Welfare,
simpler.
$69B saved.
Australia operates a streamlined welfare system that supports 11 million adults and 5 million children at a cost of $159 billion a year, down from the $228 billion the old system cost. The reduction is matched by $104 billion of household tax relief and a further $35 billion of better-targeted support, so that no recipient is worse off and many are substantially better off.
$228B
Old system, annual cost
$159B
New system, annual cost
$104B
Tax relief offsetting the change
$2B
Admin cost (was $20B)
Old vs new welfare cost
$69 billion saved annually, with $104B of tax relief and $35B of better-targeted support flowing back to the same households. No recipient is worse off.
Where the $159 billion goes
Two adult tiers and a direct child-related transfer replace the layered system of pensions, FTBs, and a thicket of supplements.
The structure
Rather than the layered system of Family Tax Benefit, Pensions, Disability Support Pension, JobSeeker, and a thicket of supplements:
- Adults earning less than $30,000 receive a full payment of $15,000 per year. Approximately 8 million people. Total: $120 billion.
- Adults earning $30,000–$60,000 receive a half payment of $7,500 per year. Approximately 3 million people. Total: $22.5 billion.
- Children are supported through their parents' payments, plus $16.5 billion of direct child-related transfers covering 5 million children.
- Administration has fallen from $20 billion to $2 billion through online assessment.
Pensioners receive a payment that exceeds their previous combined entitlement.
Disability support is integrated into the same payment scheme, with additional services delivered through Healthcoverall.