Australia one recession away from disability benefit blowout

[Banjo]

Australia one recession away from disability benefit blowout

Currently, the research outlines, over 800,000 individuals are in receipt of the DSP with this expected to rise to 1 million within the next ten years. In 2012-2013 DSP payments alone totaled $14.9 billion.

The study identified Australia’s ageing population, its population growth and increases in the female retirement age as factors in the accelerated growth of DSP recipients in the last 15 years, but also discovered two other notable factors driving this rapid growth in DSP payments.

‘Changes to the eligibility criteria of other welfare payments such as New Start Allowance (NSA) and the fact that DSP has become more generous relative to other welfare payments are significant factors in this DSP payment increase’ highlighted the co-author of the research Associate Professor Roger Wilkins at the Melbourne Institute.

Specifically the research found that over an 18 year period to 2011 adult full time weekly earnings at the lower scale increased by a factor of just under 2, whereas the maximum DSP payment has increased by a factor of 2.4. The research also highlighted that the level of DSP payments has increased substantially relative to the level of the minimum wage over the period from 2000 to 2011 and particularly from 2008 onwards.

The report found that there has been an overall decline in welfare receipt amongst people with disability but this has coincided with an increase in those obtaining DSP payments. ‘A major shift from other payments to DSP has occurred as reforms to other income-support payments such as increased conditionality for the NSA and Parenting Payment has had an effect’ comments Associate Professor Wilkins.

This edition of the Australian Economic Review contains a specific focus on disability care and additional research argues that Australia’s current Disability Support Pension programme is vulnerable to the same forces that caused unsustainable disability support programme growth in the United States, Sweden and the Netherlands and that Australia is one recession away from a disability blowout.

This research, co-authored by Professor Richard Burkhauser, highlighted how historically increases in unemployment have triggered large flows of unemployed older workers onto disability benefits.

‘If the economic winds change Australia will have a larger pool of eligible disability payment recipients and could be facing a disability benefit blowout. Australia must learn from the reforms currently underway in other countries’ heeds Associate Professor Wilkins

benews.unimelb.edu.au/2013/australia-one-recession-away-from-disability-benefit-blowout/

[Banjo]

Australia on the cusp of a disability benefit blowout?

Economists at the University of Melbourne have warned Australia is just one economic downturn away from a disability benefit blowout.

The research—published in the September edition of the Australian Economic Review—details the relative generosity and rapid growth of Australia's Disability Support Pension (DSP)

Currently, over 800,000 Australians receive the DSP, with this expected to rise to 1 million within a decade. Over the past year, $14.9 billion was paid out. DSP benefit levels have also increased relative to wages of low-skilled workers and, more recently, the minimum wage.

The research identifies Australia's ageing population, strong population growth and increases in the female retirement age as causes of the accelerated growth of the program.

But the report also finds people may be applying for the DSP because it's now more difficult to obtain some other welfare payments.

"Changes to the eligibility criteria of other welfare payments such as New Start Allowance and Parenting Payment, and the fact that DSP has become more generous relative to other payments, are significant factors in this disability payment increase," according to Associate Professor Roger Wilkins who's based at the University's Melbourne Institute of Applied Economic and Social Research.

Looking forward, Australia's DSP is vulnerable to the same forces that caused unsustainable disability support programme growth in the United States, Sweden and the Netherlands, according to a separate article in the Australian Economic Review.

This research, co-authored by the University's Professor Richard Burkhauser, warns that increases in unemployment can trigger large flows of unemployed older workers onto disability benefits.

"If the economic winds change Australia will have a larger pool of eligible disability payment recipients and could be facing a disability benefit blowout," he said.

"Australia must learn from the reforms currently underway in other countries."

phys.org/news/2013-09-australia-cusp-disability-benefit-blowout.html

[baranghope]

DSP blowout economics are a joke and a beatup and meaningless except as witchunt fodder for neocons. The LNP are going to spend the equivalent of the entire Federal medical budget on subsidising upper middle-class families and the corporations they work for, for them to breed more neocons. The cost of this Paid Parental Leave is 10 times what the DSP outlay is, a joke.

Having said that, as a couple of Forum boffins have projected, the LNP will execute full slate Med Reviews for all perhaps, or for those identified as not having necessarily pemanent ailments. Another joke. You need more Government admin to carry that out. LNP are going to sack half the Federal Civil Service.

But having said that, I have seen too many "fake" DSPers (I know 3) who were accepted on the basis of mental illness, ie., faked hysteria at having to look for work, or, even worse, having to work. There are only 2 ways they can be dealt with: CL investigation (they usually have side bodge jobs), or a rejigging of mental illness criteria. I mean there is a big difference between a cripple and a depressive being forced to build that railroad.

But Banjo's projection, that they might "grandfather" a big percentage off, to diminish the admin costs of re-evaluation may be on the cards. I hope so.

Furthermore, yes about the extra 300,000 DSPers on the street with Newstart, that is the situation in Canada where the warmer cities have them all living in the parklands, etc. Capitalists don't give a shit about anyone, except their own pocket.

[Deleted]

Sept 6, 2013 3:38:55 GMT 7 baranghope said:

DSP blowout economics are a joke and a beatup and meaningless except as witchunt fodder for neocons. The LNP are going to spend the equivalent of the entire Federal medical budget on subsidising upper middle-class families and the corporations they work for, for them to breed more neocons. The cost of this Paid Parental Leave is 10 times what the DSP outlay is, a joke.

Having said that, as a couple of Forum boffins have projected, the LNP will execute full slate Med Reviews for all perhaps, or for those identified as not having necessarily pemanent ailments. Another joke. You need more Government admin to carry that out. LNP are going to sack half the Federal Civil Service.

But having said that, I have seen too many "fake" DSPers (I know 3) who were accepted on the basis of mental illness, ie., faked hysteria at having to look for work, or, even worse, having to work. There are only 2 ways they can be dealt with: CL investigation (they usually have side bodge jobs), or a rejigging of mental illness criteria. I mean there is a big difference between a cripple and a depressive being forced to build that railroad.

But Banjo's projection, that they might "grandfather" a big percentage off, to diminish the admin costs of re-evaluation may be on the cards. I hope so.

Furthermore, yes about the extra 300,000 DSPers on the street with Newstart, that is the situation in Canada where the warmer cities have them all living in the parklands, etc. Capitalists don't give a shit about anyone, except their own pocket.

Yes Australia is the wealthiest country in the western world and has little debt compared to the USA and Europe, there plenty of money to help the unemployed and disabled, but the politicans and their big business billionaire mates would rather spend the money on other things, like tax breaks for multinational companies in Australia and tax breaks for the rich. Abbott says theres plenty of money to hand out $75,000 to wealthy women earning over $150,000 to have a baby.