Despite the current debates about increased social security spending, Australia’s spending remains comparatively low. The real Budget problems lie elsewhere. Expenditures on social security payments in 2013 were 8.6% of Gross Domestic Product (GDP) compared with an Organisation for Economic Co-operation and Development (OECD) average of 13.0%1. Of the $28 billion of growth in social security costs between 2002 and 2012 (after inflation), $13 billion comprised increases in Age Pension expenses (due to a growing population of older people, increases in pension rates and easing of the means test), and $9 billion came from increases in family payment expenses (due to increases in payment rates, easing of income tests, and the introduction of the Baby Bonus and Schoolkids Bonus).
Posted on: Thu, 06 Mar 2014 06:11:12 +0000
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