Pensioner concession cut sparks new advertising fight between SA, Abbott Government

The South Australian Government is using a taxpayer-funded advertising campaign to take another swipe at last year's federal budget, as the Coalition vows to respond with its own ads.

The SA Government ads, set to run for 10 weeks, blame Prime Minister Tony Abbott's Government for cuts to pensioners' concessions in South Australia.

From next July, the SA Government plans to pass on a federal budget spending cut to the state's pensioners by withdrawing the concessions they get on local council rates, meaning an annual hit of $190 for some households.

Premier Jay Weatherill said the ads highlighted a $30 million annual hit to pensioners' concessions.

"We are campaigning to have those cruel cuts, which are directed at our most vulnerable citizens, reversed," he said.

South Australian federal Liberal frontbencher Jamie Briggs expressed his anger at the $1 million campaign.

"It is a Labor lie," he said. "This is a disgrace. It's an abuse, it's a misuse [of public money] and they should be utterly ashamed."

Mr Briggs said the Coalition planned to return fire with its own taxpayer-funded ads.

"We will be responding with a campaign of truth to these Labor lies," he said.

SA's Opposition Liberal leader Steven Marshall said the federal cut had been accepted elsewhere.

"This is a Federal Government cut which has been accepted right around the country, including in Victoria where we have a Labor Government," he said.

South Australia and the Federal Government also are at odds over the future of submarine construction and the impact for defence firm ASC in Adelaide.