Post by Banjo on Feb 3, 2014 18:27:33 GMT 7
Is Australia's welfare spending heading down the same path as Europe's?
A report showing one in five Australians receive income support has prompted Social Services Minister Kevin Andrews to label the welfare system "not sustainable" and order a review.
Talking on ABC radio, Mr Andrews said: "With the population ageing at the rate that it is, we've got to ensure in the future that we're able to sustain the welfare system, otherwise we'll find ourselves in 10 or 15 years' time in the situation that some of the countries in Europe are in".
The claim: Kevin Andrews has labelled Australia's welfare system unsustainable and says in 10 to 15 years' time Australia could find itself in the same situation that some European countries are in.
The verdict: Treasury projections to 2050 show welfare spending as a proportion of GDP will remain steady over the next three decades.
What are the predictions for Australia's welfare spending?
The federal treasury produced its third comprehensive Intergenerational Report in 2010. The report, "Australia to 2050: future challenges" analyses the changes Australia will face over the next 40 years. Experts referred Fact Check to the report for future predictions on welfare spending.
The report says government spending on pensions and income support payments in 2009-10 was 6.9 per cent of GDP. It predicts that there will be minor fluctuations and it will still be 6.9 per cent in 2049-50.
The report says Australia is facing an increase in age-related spending, but more in health and aged care services than in welfare payments. It says that as a proportion of GDP, spending on health is projected to rise from 4 per cent to 7.1 per cent by 2049-50. Aged care is projected to rise from 0.8 per cent of GDP to 1.8 per cent. Spending on age-related pensions is projected to rise from 2.7 per cent of GDP to 3.9 per cent.
The number of people of eligible pension age is projected to increase by around 150 per cent by 2049-50, however the report predicts there will be a decline in the proportion of pensioners receiving a full age pension because of the increased value of superannuation and other private assets and income.
Over the same period, spending on other welfare programs - unemployment benefits, widow pensions, parenting payments, carer payments and study allowances - is expected to fall.
The report says the ageing of the Australian population will place substantial pressure on government spending over the next 40 years, however two thirds of this cost will fall under health.
The verdict
There is nothing to indicate that as the population ages Australia is heading toward the high welfare spending of some European countries. Treasury projections to 2050 show welfare spending as a proportion of GDP will remain steady over the next three decades.
www.abc.net.au/news/2014-02-03/kevin-andrews--makes-unfounded-welfare-claim/5215798
I've condensed this article to make it easier to copy but there's a lot more on the website.
A report showing one in five Australians receive income support has prompted Social Services Minister Kevin Andrews to label the welfare system "not sustainable" and order a review.
Talking on ABC radio, Mr Andrews said: "With the population ageing at the rate that it is, we've got to ensure in the future that we're able to sustain the welfare system, otherwise we'll find ourselves in 10 or 15 years' time in the situation that some of the countries in Europe are in".
The claim: Kevin Andrews has labelled Australia's welfare system unsustainable and says in 10 to 15 years' time Australia could find itself in the same situation that some European countries are in.
The verdict: Treasury projections to 2050 show welfare spending as a proportion of GDP will remain steady over the next three decades.
What are the predictions for Australia's welfare spending?
The federal treasury produced its third comprehensive Intergenerational Report in 2010. The report, "Australia to 2050: future challenges" analyses the changes Australia will face over the next 40 years. Experts referred Fact Check to the report for future predictions on welfare spending.
The report says government spending on pensions and income support payments in 2009-10 was 6.9 per cent of GDP. It predicts that there will be minor fluctuations and it will still be 6.9 per cent in 2049-50.
The report says Australia is facing an increase in age-related spending, but more in health and aged care services than in welfare payments. It says that as a proportion of GDP, spending on health is projected to rise from 4 per cent to 7.1 per cent by 2049-50. Aged care is projected to rise from 0.8 per cent of GDP to 1.8 per cent. Spending on age-related pensions is projected to rise from 2.7 per cent of GDP to 3.9 per cent.
The number of people of eligible pension age is projected to increase by around 150 per cent by 2049-50, however the report predicts there will be a decline in the proportion of pensioners receiving a full age pension because of the increased value of superannuation and other private assets and income.
Over the same period, spending on other welfare programs - unemployment benefits, widow pensions, parenting payments, carer payments and study allowances - is expected to fall.
The report says the ageing of the Australian population will place substantial pressure on government spending over the next 40 years, however two thirds of this cost will fall under health.
The verdict
There is nothing to indicate that as the population ages Australia is heading toward the high welfare spending of some European countries. Treasury projections to 2050 show welfare spending as a proportion of GDP will remain steady over the next three decades.
www.abc.net.au/news/2014-02-03/kevin-andrews--makes-unfounded-welfare-claim/5215798
I've condensed this article to make it easier to copy but there's a lot more on the website.
