Welfare

Overview

How much Australia spends in the provision of welfare for those who need assistance or care is an indicator of its well-being as a nation.

Total welfare expenditure in 2005-06 was $90 billion, comprised of $61 billion (68%) income support payments and $29 billion (32%) welfare services (benefits-in-kind). Spending on welfare services in 2005-06 was 3.0% of GDP or $1,404 per person.

Welfare expenditure comprises cash benefits and services specifically directed to older people, families and children, people with disabilities and other groups (such as widows and migrants).

Spending on welfare services now includes high-level residential care expenditure which was previously classified to health services.

At $90 billion in 2005-06, welfare expenditure is of a similar scale to health expenditure ($87 billion).

Governments (Australian, state and territory, and local) are the major funders of welfare cash benefits and services, while non-government community service organisations (NGCSOs) are major providers of welfare services.

The Australian Government funded all cash benefits in 2005-06 ($61 billion).

Governments funded 71% ($20 billion out of $29 billion) of total welfare services expenditure, with the non-government sector funding the remaining 29% (about $8 billion).

NGCSOs provided $20 billion out of $29 billion welfare services in 2005-06.

Older people and families and children account for around one-third each of total welfare expenditure, followed by people with disabilities (at roughly one-sixth), then other groups.

The Institute's welfare services expenditure data collection for Australia dates from 1987-88 to 2005-06. Data from 1998-99 are not comparable with data for earlier years due to the change of accounting system from cash to accrual that took place in 1998-99.

	Welfare expenditure Australia 2005-06 Health and welfare expenditure series no. 31 'Welfare expenditure Australia' 2005-06 provides estimates of welfare expenditure in Australia for the period 1998-99 to 2005-06. Welfare expenditure comprises cash payments and expenditure for services specifically directed to families and children, older people, people with disabilities, and other groups such as widows, refugees and migrants. In 2005-06 this expenditure totalled $90 billion, $61 billion being for cash benefits and the remaining $29 billion for welfare services. Funding of welfare services by the eight state and territory governments are compared. This publication also contains estimates of social tax expenditures by the Australian Government and a special chapter on residential aged care expenditure. This report is an important reference for policy makers and those working in the community services sector. Authored by AIHW. Published 21 November 2007; ISSN 1323-5850; ISBN-13 978 1 74024 735 1; AIHW cat. no. HWE 38; 84pp.; $29.00
	Welfare expenditure Australia 2003-04 Health and welfare expenditure series no. 27 'Welfare expenditure Australia 2003-04' provides estimates of expenditure on welfare services and social security benefits in Australia for the period 1998-99 to 2003-04. Welfare services expenditure are benefits in kind to families and children, older people, people with disabilities, and other target groups such as Aboriginal and Torres Strait Islander peoples and migrants. This expenditure totalled $20 billion in 2003-04. Estimates are reported by source of funding, whether from governments, from individuals in the form of fees for services or from non-government community service organisations. Funding of welfare services by the eight state and territory governments are compared. This publication also contains estimates of social tax expenditures by the Australian Government. This report is an important reference for policy makers and those working in the community services sector. Authored by AIHW. Published 7 September 2006; ISSN 1323-5850; ISBN-13 978 1 74024 601 9; AIHW cat. no. HWE 34; 61pp.; $22.00
	Welfare expenditure Australia 2002-03 Health and welfare expenditure series no. 24 This report provides estimates of expenditure on welfare services in Australia for the period 1998-99 to 2002-03. It also brings together cash and non-cash benefits for people in need of assistance, using an international framework being developed by the Organisation for Economic Co-operation and Development (OECD). This publication also contains a special feature chapter on child care in Australia. This report provides an important reference for policy makers into field and those working in the community services sector. Authored by AIHW. Published 28 July 2005; ISSN 1323-5850; ISBN-13 978 1 74024 479 4; AIHW cat. no. HWE 31; 72pp.; OUT OF PRINT

Last reviewed by on 22 November 2007