Salient. Newspaper of the Victoria University Students' Association. Vol 42 No. 15. July 9 1979
Means-Testing
Means-Testing
Even though the National Party rejects means-testing for its pet Superannuation Scheme, it is nevertheless prevalent through this new bursary scheme. Essentially there are two types of means-testing; parental (including spouse) and income ( of the individual). A mix of the two is also possible.
Parental means testing will be applied for single students under the age of twenty. In applying for the Supplementary Hardship Grant, this group of students will have to make joint application with their parents or guardian. About 53% of all students are under 20. One of the greatest faults of parental 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 [unclear: 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 significant discrepancy between assumed and actual earnings.
Means-testing effectively is a device for cutting expenditure. It works two ways. First it deters people from applying for assistance especially when parental testing is involved. It is an humiliating process which involves an invasion of privacy. This is an important factor as to why so few students acutally apply for the Hardship and Special Hardship Allowances.
Secondly because it is a secretive method, it can mean cuts in a very real and direct sense.