Social Security measures

Press, Volume CXII, Issue 32873, 23 March 1972, Page 1

Social Security measures

The Royal Commission on Social Security has advised the Government to double the family benefit and abolish the tax exemption for children; to raise general benefits to $2O a week for single persons and to $33 for married couples; to introduce a selective “domestic purposes benefit” for solo parents, women caring for sick or infirm persons, and for women living alone. Although the commissioners found no demand for a radical change in the social security system, they have made more than IM proposals to modify the present system, alter its administration, and to increase certain benefits. The commission’s social security proposals an expected to cost $l4l million,

mostly for higher basic benefits and the increased family allowance. The abolition of income tax exemption for children would yield an estimated $3B million and other savings-— mainly from the abolition of the $5B-a-year taxation rebate for superannuation

beneficiaries—would reduce the total net outlay to $94 million.

The proposals would raise the annual expenditure on social security payments to $450 million and the cost of medical and supplementary benefits would rise from $21.1 million to $283 million.

“We have, and should retain, a mixed bag of selective and universal benefits,” says the commission’s report.

Social security is as much needed now as in the 1930 s and economic growth does not obviate the need for substantial redistribution of incomes, it says. The system is no longer required to stimulate demand and employment; the present accent is on holding demand in check. “If this is to be done there is an added reason why social security expenditure should be concentrated primarily in areas of need.” Fuller report on page 5.