Means-Testing

Even though the National Party rejects means-testing for its pet Superannuation Scheme, it is nevertheless prevalent throughout this new bursary scheme. [unclear: sentially] there are two types of means-testing -[unclear: paren eluding] spouse) and income (of the individual). A of the two is also possible.

Parental [unclear: meai] will be applied for single students under the [unclear: age] twenty. In applying for the Supplementary Harship [unclear: nt] this group of students will have to make joint [unclear: appli] with their parents or guardian. About 53% of all students are under 20. One of the greatest faults of parental [unclear: means] testing is that it assumes a uniform willingness of parents to contribute towards the costs of university education.

As stated earlier both the Tertiary Study Grant and the Tertiary Fees Grant are income-tested. The problem with income testing is working out a fair and equitable system in which to do it. One way is to base it on the previous year's income. But this falls down because both personal and general circumstances can vary considerably from year to year.

Another way is to base it on assumed earnings for the coming year. However assumed earnings are not easy to assess in advance and the result can invariably be a significant discrepancy between assumed and actual earnings.