Policy Address

52.         The proposed Low-income Working Family Allowance is premised on three basic principles:

1. The basic allowance will be granted on a family basis and tied to employment and working hours to encourage self-reliance.  More allowance will be granted to those who work more.  Families with eligible children and young members will receive additional allowance;
2. To ensure effective use of resources, an income test and an asset test with a lower threshold will be introduced; and
3. The scheme’s structure will be as simple and easy to understand as possible, with appropriate safeguards against abuse.

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