New analysis from an Australian thinktank has found $3.6 billion in benefits from Commonwealth, state, and territory governments this year went to the top 40 per cent of residents due to poorly targeted concession and cost-of-living support.

Policy Institute Australia has claimed its research found that a lack of means testing, flawed eligibility rules, and consumption-based program designs was leading to poorly targeted assistance.

The analysis titled “Hit and Miss” examined supports offered across Australia and found spending by state governments this year has in some instances reached 10 per cent of that they raise in their own tax revenue.

A separate breakdown of Western Australia’s $1.3 billion in total supports showed the State had the most generous concessions for older and wealthier Australians of any jurisdiction in the country.

In an example, it claimed due to loose eligibility rules, a retiree living in a $3 million home with $3 million in superannuation can qualify for both a WA Seniors Card and a Commonwealth Seniors Health Card.

“This is because someone can hold a WA Seniors Card regardless of their income or how many assets they have, as long as they are 65 or over and work no more than 25 hours a week in paid employment.

In addition, a retired couple could qualify for a Commonwealth Seniors Health Card with up to $5 million in assets outside of their home.

“People who hold these cards are more likely to be in the top 20 per cent of wealthiest Australian households,” it stated.

The analysis also found WA’s utilities concessions of $1300 were higher than that of Queensland at $616 and of NSW at $1114.

The independent thinktank has suggested 1.3 billion could be saved annually if they made changes.

It includes State and territory governments making use of the Services Australia data to better assist people in need instead of treating everyone who holds a concession card the same way.

The Institute also noted lack of means testing for the $100 fuel support for anyone with a valid driver’s licence unveiled by WA Treasurer Rita Saffioti in this year’s State Budget.

The suggestions in WA include merging all existing concessions into a single “cost-of-living allowance” in a move similar to South Australia’s annual concession.

To save at least $100 million annually, it included that WA should restrict concession eligibility to Pensioner Concession Card holders on a full Age Pension, rather than wealthy retirees holding WA Seniors or Commonwealth Seniors Health Cards.

Principal economist and report author Nicholas Tarrant said the analysis was about “making sure support goes to those who need it most” rather than “spending less on those doing it tough.”

“Support is too often based on how much petrol or energy you use, or how much your home is worth. But this favours the well-off.

“If state governments want to help with cost-of-living pressures, they need to rethink the way they do it,” he said.

“Cost-of-living is the number one concern for people across the country.

“With Victoria and New South Wales heading to elections, there is a temptation to spend more. But the better response would be to fix how the current support is delivered.”

The thinktank launched early last year and board includes investment banker and founder John Wylie, former Productivity Commission chairman Peter Harris, ex-secretary of the PM’s department Glyn Davi, businesswoman Jenn Morris, The Australia’s Editor-at-Large Paul Kelly and ex-ABC news director Kate Torney.