The federal opposition says aged pensioners have been discriminated against in favour of self-funded retirees in the federal budget.
Labor says many aged pensioners will receive a single payment of $51 this coming year to cover the cost of utility bills.
It says many self-funded retirees, by contrast, will receive $205 through superannuation tax changes, as well as generous income tax cuts.
However, government frontbencher Rod Kemp has told the Senate Labor's criticisms are unfair and divisive.
"Well, I'm afraid we're back to the old (Mark) Latham view of the world - the old class war and we're pitting groups against other groups.
"I have long heard the concerns of self-funded retirees and the feeling that they have in the past, certainly under Labor governments, not been adequately recognised in the tax system."