Family care benefit

Press, 31 January 1985, Page 16

Family care benefit

Sir,—l wonder if, through your columns, the Minister of Social Welfare, Mrs Hercus, could explain how persons with capital assets of at least $500,000 are eligible for the family care benefit which was introduced ostensibly to assist needy families in our society. Was this “surprise package” of the Budget rushed through without being adequately worked through and will these anomalies be looked into to ensure the benefit reaches those truly in need?—Yours etc., J. N. Ewart. January 14, 1985. [The Minister of Social Welfare, Mrs Hercus, replies: “Family Care was introduced as a result of the concern expressed at the Economic Summit conference in September that families on lower wages were in urgent need of assistance. Wage and salary earners had received no increase in income since July, 1982, apart from the $8 a week general wage order from April 1, 1984, and Family Care was introduced to provide urgent assistance to low and moderate income families. There are three alternative ways of testing need — an income test, an assets test or a combination of both. An income test was chosen for Family Care as the most sensible and practical determinant of need. An assets test, or taking assets into account, would have required a much more complicated procedure, in my view too complex to justify in the circumstances, as

well as disadvantaging many families on modest incomes. The practical end result of the income test used for Family Care was a relatively simple form to fill in, ease of processing, speed of delivery and effective targeting. Judging by my correspondence, the vast majority of those receiving Family Care have not only lower incomes but few assets compared with the small number of those with low incomes and big assets. If your correspondent wants me to introduce a bureaucratic new test for Family Care, then the answer is no.”]