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Government error imposes assets test on child disability allowance



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PARLIAMENT OF AUSTRALIA HOUSE OF REPRESENTATIVES

RAY BRAITHWAITE, M.H.R. FEDERAL MEMBER FOR DAWSON SHADOW MINISTER FOR COMMUNITY SERVICES AND AGED CARE

GOVERNMENT ERROR IMPOSES ASSETS TEST ON CHILD DISABILITY ALLOWANCE

The Child Disability Allowance was increased by $4.30 a fortnight on 1 January 1992.

But an omission in the Social Security Legislation Amendment (No. 3) Act means that an assets test is imposed on recipients of the allowance.

This means that if a farmer or the owner of a business has assets worth more than $600,000 - but no income as a result of Keating's recession - he/she will not be eligible for Family Allowance and thus will not be able to claim CDA for his/her disabled child.

Parents around the country have been dismayed to receive

notification from the Department of Social Security that they are no longer entitled to the Family Allowance or the Child

Disability Allowance, which is conditional on eligibility for Family Allowance.

Last year's legislation failed to omit families with disabled children from the assets test provisions for Family Allowance, as did the original legislation.

The Department of Social Security has admitted the error.

Why did the then Minister, Senator Graham Richardson, fail to notice the omission? Perhaps he was too busy plotting Keating's advancement.

But, in whichever way the present Minister corrects the error, the Child Disability Allowance entitlement must be paid

retrospectively to 1 January 1992.

Canberra, 21 January 1992

Inquiries: Ray Braithwaite (079) 576411 Carol Lamb (06) 277 4218 COMMONWEALTH

PARLIAMENTARY LIBRARY MICAH

P.O. Box 714, Mackoy, Qld. 4740 - 3rd Floor, Suncorp Building, 123 Victoria St., Mackay. Ph: (079) 57 6411 /57 8329 Facsimile: (079) 57 2136 Parliament House Canberra - Ph: (062) 77 4218 Facsimile: (062) 77 2065

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