Tan Kin Lian - Perspectives Means test
The government has a habit of applying means test to determine who is eligible to get subsidies. Some examples where means tests are applied:

1.  Hospital charges
2.  Child care subsidy
3.  Nursing care subsidy
4.  Elderly transport charges
5.  Utility and cash vouchers
6.  Subsidy for treatment in private GP clinics

Some of these means tests were implemented in the past and might have been removed. 

Different methods are used to apply the means tests:

1. Individual's income or housing types
2. Household's income

It is confusing and costly (i.e. administrative cost) to apply the means test. It is also unfair, as some people are denied the subsidy due to how the rules are written. 

It is better to remove the means tests and to apply same charges for all users. The subsidized rates should be given to foreign workers also, as the costs are ultimately borne by their employers. 

To fund the subsidies, it is better to collect more taxes based on personal income or property values (where appropriate) or on a levy on foreign workers. 

It is counter productive and wasteful to apply the means test to deny the subsidy to people who are supposed to be well off. It is better to get those well off people to pay higher taxes. 

Tan Kin Lian 
 

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