Chapter 3, page no. 5 - What are the means-tested benefits? Here it is briefly explained..but I don't understand what they are? Can anyone plzz explain its meaning giving another example?
Means tested means that if your income is above a certain amount, or the assets you own are above a certain amount, you will either not get the benefit, or get taxed on a payment that you receive. Aimed at targeting the richer in society. From the other side, if your income or assets are LESS than a certain hurdle, you will either get a "means tested benefit" or you will escape tax on a benefit.
From my understanding, means tested benefits are benefits granted to low income people, whose income is below a certain level. e.g, food stamps. which is why means tested benefits are tax free.
