What National Have Been Saying
Bob
Simcock has claimed that CSC thresholds had traditionally always increased with benefit adjustments:
"It is not automatic - it's not one of those things that just happens by law - but I understand it has always occurred at the same time." The
Dominion April 17 2001
FACT
National NEVER increased the CSC
threshold in relation to benefit CPI increases.
The threshold was increased in 1996 and 1997 in relation to movement in the
level of family support - not CPI. (Some rates also moved in 1994 when the
scheme was expanded).
Our 2000 general increase was the first time it had moved along with benefit
CPI changes.
In other words, year after year National saw Superannuitants lose their
community services card entitlements as Super was CPI adjusted - for example it
is estimated that some 1,503 superannuitants moved over the income threshold due
to National's CPI adjustment in 1995. National did nothing to protect their CSC
assess.
We didn't think that that was fair or right. In 2000 we moved to protect
their interests AND increased the general threshold (the first increase since
1997).
This year we have again acted to protect Superannuitants access to the CSC.
This is because we acknowledge that older New Zealanders face higher health
costs and cannot chose to forego the CPI increase to their pensions.
Does this create a new inequity between those on a
benefit and working families?
No.
Income tested beneficiaries have always received the CSC automatically. This was done to lower administrative costs and to ensure take-up (you will recall how unpopular the 'poor card' originally was).
So a few beneficiaries over the income threshold for CSC have always received the CSC.
For example as at 25 April 1997 3,348 beneficiaries over the threshold still got the card.
Of course these people were those facing great difficulty with high disability costs, high housing costs and special costs.
What this illustrates is that there always have been problems with the CSC system in that low income workers, Superannuitants, students, etc face a separate income test whereas beneficiaries do not.
The real problem is with the Community Services Card itself.
The threshold system is a simple cut out. Earn one dollar over the threshold and next time your card is due for renewal you will lose it.
Bottom line: The CSC is a very blunt tool fraught with inequities and difficulties.
Historical Community Services Card Income Limits
| FAMILY SIZE | 01/04/00 (5) Current | 01/07/97 (4) | 01/07/96 (3) | 01/02/94 (2) | 01/02/92 (1) |
| Single Sharing Accommodation | $18,586 | $17,769 | $17,134 | $16,500 | $16,500 |
| Single Living Alone | $19,689 | $18,846 | $18,173 | $17,500 | $17,500 |
| Married couple no dependents | $29,398 | $28,000 | $27,000 | $26,000 | $23,000 |
| Family of 2 - 1 adult, 1 child | $29,398 | $28,000 | $27,000 | $26,000 | |
| Family of 3 | $34,243 | $32,846 | $31,673 | $30,500 | |
| Family of 4 | $39,089 | $37,692 | $36,346 | $35,000 | |
| Family of 5 | $43,935 | $42,538 | $41,019 | $39,500 | |
| Family of 6 | $48,782 | $47,385 | $45,692 | $44,000 | |
| From 1.02.99, additional thresholds for families with more than 6 members were introduced. For each additional child add $4,840 to the income limit. | |||||