Grey Power says lower paid people and those on low fixed incomes, including the eldery, be hit hardest by a proposed increase to GST.
The Government is considering raising GST from 12.5% to 15%, while reducing in the top rate of income tax from 38% to 33%.
Grey Power president Les Howard says most elderly will not see any benefit from the cut in income taxes since they are no longer high earners.
Mr Howard told Morning Report most elderly people spend all of their income just to get by, so they would be hardest hit by the tax changes, since most will only feel the increase to GST.
Work by a superannuation taskforce five years ago found 75% of those receiving the payment rely on it as their sole source of income.
