Social Policies
#19Key Findings
With a broadly content society despite high levels of inequality, Australia falls into the middle ranks with regard to social policy (rank 19). Its score in this area has declined by 0.2 points relative to 2014.
Integration policy has a long and generally successful history, with integration through the labor market a key factor in migrants’ success. However, net migration turned negative during the pandemic. The indigenous population remains badly marginalized, with life expectancies about 10 years below the country’s average.
Preschool spending is low in international comparison, and the high cost of childcare continues to be a problem for many families despite recent increases in subsidies. Student test results have been declining compared to other countries in the region. International student numbers plummeted during the pandemic, undermining university-system finances.
The healthcare system is generally of high quality, though waiting periods can be long in the public sector. The age of pension eligibility is being increased, and the pension system is deemed largely financially sustainable. COVID-19 support payments virtually eliminated poverty in 2020, but were phased out in 2021.
Integration policy has a long and generally successful history, with integration through the labor market a key factor in migrants’ success. However, net migration turned negative during the pandemic. The indigenous population remains badly marginalized, with life expectancies about 10 years below the country’s average.
Preschool spending is low in international comparison, and the high cost of childcare continues to be a problem for many families despite recent increases in subsidies. Student test results have been declining compared to other countries in the region. International student numbers plummeted during the pandemic, undermining university-system finances.
The healthcare system is generally of high quality, though waiting periods can be long in the public sector. The age of pension eligibility is being increased, and the pension system is deemed largely financially sustainable. COVID-19 support payments virtually eliminated poverty in 2020, but were phased out in 2021.
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To what extent does education policy deliver high-quality, equitable and efficient education and training?
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Education policy fully achieves the criteria.
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Education policy largely achieves the criteria.
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Education policy partially achieves the criteria.
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Education policy does not achieve the criteria at all.
The quality of Australia’s educational institutions tends to be higher in non-government schools and in major metropolitan regions. Overall, the high-school completion rate is around 80%. However, the low level of preschool spending continues to be a weak point: Australia spends one-quarter of the OECD average on preschools and the country has been falling down the PISA ranking lists as compared to the countries in its region.
Regarding equity, the continued high level of government subsidies to non-government schools means that inequity in schooling outcomes is high. Unsurprisingly, given the high levels of government subsidy, private-school enrolment rates are significantly higher in Australia than the OECD average. Despite subsidies, tuition fees at private schools are often beyond the means of less affluent parents, contributing to inequality. Moreover, inequity has increased, as government funding per student in non-government schools has increased at a faster rate than government funding per student in government schools. The 2017 budget took steps toward reducing inequity, boosting funding to government schools and reducing funding to some non-government schools in the 2017 – 2027 period. However, following a backlash from the Catholic school sector, which accounts for approximately half the non-government school sector, the government in September 2018 announced an increase in funding to Catholic schools of AUD 4.5 billion over 10 years.
In the higher-education sector, the Higher Education Loan Program (HELP), introduced in 1989, continues to be an important mechanism for equitably and sustainably funding higher education. The scheme has increased the extent to which students bear the cost of their education without diminishing access to higher education for students from poor families. Several measures in recent years have sought to reduce the cost to government of the higher-education system. For example, since 1 January 2016, Australians living overseas have been required to repay HELP debts on the same terms as those faced by Australian residents.
With regard to efficiency, there is much room for improvement. Australia’s educational system is complex, with responsibilities shared between the states and the federal government. Funding for vocational education and training is limited. State and territory governments are highly revenue-constrained, and the federal government has shown little willingness to step up. In recent years, a HELP scheme for vocational training, called VET Student Loans, has been established, but applies only to diploma-level courses.
The higher-education sector is generally efficient, and universities have had to be entrepreneurial to prosper, aggressively marketing to international students and pursuing independent sources of research funds. However, in 2019, concerns were expressed about the sector’s reliance on fee-paying international students, especially from China. Some Australian universities derived up to 20% of their income from Chinese students, making them very vulnerable to a downturn in this market. The arrival of COVID-19 saw international student enrolments plummet, with students denied entry to Australia from early on in the pandemic until December 2021. Most universities in Australia have, therefore, suffered financially and continue to do so given that international student numbers appear unlikely to return to pre-COVID-19 levels for some years to come.
Citations:
David Gonski, ‘Final Report of the Review of Funding for Schooling,’ December 2011: http://www.betterschools.gov.au/review
Moshe Justman and Chris Ryan, ‘What’s Wrong with the Gonski Report: Funding Reform and Student Achievement?’ Policy Brief No. 2/13. Melbourne Institute. The University of Melbourne. April 2013: http://www.melbourneinstitute.com/downloads/policy_briefs_series/pb201 3n02.pdf
http://studyassist.gov.au/sites/StudyAssist/VET%20Student%20Loans
http://www.oecd.org/edu/EDUCATION%20POLICY%20OUTLOOK%20AUSTRALIA_EN.pdf
https://www.oecd-ilibrary.org/education/education-at-a-glance-2018_eag-2018-en
https://www.abc.net.au/news/2019-08-21/australian-universities-too-dependent-on-chinese-students-report/11427272
https://www.universitiesaustralia.edu.au/media-item/17000-uni-jobs-lost-to-covid-19/
Regarding equity, the continued high level of government subsidies to non-government schools means that inequity in schooling outcomes is high. Unsurprisingly, given the high levels of government subsidy, private-school enrolment rates are significantly higher in Australia than the OECD average. Despite subsidies, tuition fees at private schools are often beyond the means of less affluent parents, contributing to inequality. Moreover, inequity has increased, as government funding per student in non-government schools has increased at a faster rate than government funding per student in government schools. The 2017 budget took steps toward reducing inequity, boosting funding to government schools and reducing funding to some non-government schools in the 2017 – 2027 period. However, following a backlash from the Catholic school sector, which accounts for approximately half the non-government school sector, the government in September 2018 announced an increase in funding to Catholic schools of AUD 4.5 billion over 10 years.
In the higher-education sector, the Higher Education Loan Program (HELP), introduced in 1989, continues to be an important mechanism for equitably and sustainably funding higher education. The scheme has increased the extent to which students bear the cost of their education without diminishing access to higher education for students from poor families. Several measures in recent years have sought to reduce the cost to government of the higher-education system. For example, since 1 January 2016, Australians living overseas have been required to repay HELP debts on the same terms as those faced by Australian residents.
With regard to efficiency, there is much room for improvement. Australia’s educational system is complex, with responsibilities shared between the states and the federal government. Funding for vocational education and training is limited. State and territory governments are highly revenue-constrained, and the federal government has shown little willingness to step up. In recent years, a HELP scheme for vocational training, called VET Student Loans, has been established, but applies only to diploma-level courses.
The higher-education sector is generally efficient, and universities have had to be entrepreneurial to prosper, aggressively marketing to international students and pursuing independent sources of research funds. However, in 2019, concerns were expressed about the sector’s reliance on fee-paying international students, especially from China. Some Australian universities derived up to 20% of their income from Chinese students, making them very vulnerable to a downturn in this market. The arrival of COVID-19 saw international student enrolments plummet, with students denied entry to Australia from early on in the pandemic until December 2021. Most universities in Australia have, therefore, suffered financially and continue to do so given that international student numbers appear unlikely to return to pre-COVID-19 levels for some years to come.
Citations:
David Gonski, ‘Final Report of the Review of Funding for Schooling,’ December 2011: http://www.betterschools.gov.au/review
Moshe Justman and Chris Ryan, ‘What’s Wrong with the Gonski Report: Funding Reform and Student Achievement?’ Policy Brief No. 2/13. Melbourne Institute. The University of Melbourne. April 2013: http://www.melbourneinstitute.com/downloads/policy_briefs_series/pb201 3n02.pdf
http://studyassist.gov.au/sites/StudyAssist/VET%20Student%20Loans
http://www.oecd.org/edu/EDUCATION%20POLICY%20OUTLOOK%20AUSTRALIA_EN.pdf
https://www.oecd-ilibrary.org/education/education-at-a-glance-2018_eag-2018-en
https://www.abc.net.au/news/2019-08-21/australian-universities-too-dependent-on-chinese-students-report/11427272
https://www.universitiesaustralia.edu.au/media-item/17000-uni-jobs-lost-to-covid-19/
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To what extent does social policy prevent exclusion and decoupling from society?
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Policies very effectively enable societal inclusion and ensure equal opportunities.
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For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
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For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
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Policies exacerbate unequal opportunities and exclusion from society.
Australia has a mixed record on social inclusion. While successive governments have made considerable efforts to promote social policies that reduce social exclusion, the comparatively flexible labor market has probably been the most effective instrument with regard to ensuring social inclusion.
Despite a relatively unequal income distribution and other social-policy weaknesses, Australians are quite content with their lives. Life satisfaction in Australia is higher than in many other OECD countries, and almost as high as in the Scandinavian countries. Australian society offers ample employment and training opportunities for the younger generation. The dire situation of the indigenous population continues to be one of Australia’s most pressing social issues. Life expectancy among indigenous Australians is approximately 10 years lower than the Australian average.
The most significant development in social inclusion policy under the Morrison government was in the initial response to COVID-19, which saw poverty in Australia all but eliminated during much of 2020 due to the raft of income support initiatives implemented. However, most of these supports were phased out by April 2021. The main changes that have remained in place are a AUD 25 per week increase in the unemployment benefit compared with its pre-COVID-19 level and a AUD 22 per week increase in the amount a recipient can earn before the benefit is reduced.
Citations:
Australian Institute of Health and Welfare: Mortality and life expectancy of Indigenous Australians 2008 to 2012. http://www.aihw.gov.au/publication-detail/?id=60129548470&tab=2.
Reference Group on Welfare Reform, ‘A New System for Better Employment and Social Outcomes.’ Australian Government. February 2015: https://www.dss.gov.au/our-responsibilities/review-of-australias-welfare-system/a-new-system-for-better-employment-and-social-outcomes-full-version-of-the-final-report.
http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Table_1_Youth_unemployment,_2014Q4_%28%25%29.png
https://www.dpmc.gov.au/sites/default/files/publications/indigenous/Health-Performance-Framework-2014/tier-1-health-status-and-outcomes/120-infant-and-child-mortality.html
https://www.dpmc.gov.au/sites/default/files/publications/indigenous/Health-Performance-Framework-2014/tier-1-health-status-and-outcomes/119-life-expectancy-birth.html
https://newsroom.unsw.edu.au/news/general/50-boost-jobseeker-makes-australias-payment-second-lowest-oecd
Despite a relatively unequal income distribution and other social-policy weaknesses, Australians are quite content with their lives. Life satisfaction in Australia is higher than in many other OECD countries, and almost as high as in the Scandinavian countries. Australian society offers ample employment and training opportunities for the younger generation. The dire situation of the indigenous population continues to be one of Australia’s most pressing social issues. Life expectancy among indigenous Australians is approximately 10 years lower than the Australian average.
The most significant development in social inclusion policy under the Morrison government was in the initial response to COVID-19, which saw poverty in Australia all but eliminated during much of 2020 due to the raft of income support initiatives implemented. However, most of these supports were phased out by April 2021. The main changes that have remained in place are a AUD 25 per week increase in the unemployment benefit compared with its pre-COVID-19 level and a AUD 22 per week increase in the amount a recipient can earn before the benefit is reduced.
Citations:
Australian Institute of Health and Welfare: Mortality and life expectancy of Indigenous Australians 2008 to 2012. http://www.aihw.gov.au/publication-detail/?id=60129548470&tab=2.
Reference Group on Welfare Reform, ‘A New System for Better Employment and Social Outcomes.’ Australian Government. February 2015: https://www.dss.gov.au/our-responsibilities/review-of-australias-welfare-system/a-new-system-for-better-employment-and-social-outcomes-full-version-of-the-final-report.
http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Table_1_Youth_unemployment,_2014Q4_%28%25%29.png
https://www.dpmc.gov.au/sites/default/files/publications/indigenous/Health-Performance-Framework-2014/tier-1-health-status-and-outcomes/120-infant-and-child-mortality.html
https://www.dpmc.gov.au/sites/default/files/publications/indigenous/Health-Performance-Framework-2014/tier-1-health-status-and-outcomes/119-life-expectancy-birth.html
https://newsroom.unsw.edu.au/news/general/50-boost-jobseeker-makes-australias-payment-second-lowest-oecd
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To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?
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Health care policy achieves the criteria fully.
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Health care policy achieves the criteria largely.
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Health care policy achieves the criteria partly.
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Health care policy does not achieve the criteria at all.
As with most countries, the COVID-19 pandemic has created significant challenges for the healthcare sector. However, aside from the injection of funding into vaccine and treatment development and deployment, there have been no notable developments in healthcare policy under the Morrison government.
The Australian healthcare system is a complex mix of public and private sector healthcare provision and funding. Correspondingly, its performance on quality, inclusiveness and cost efficiency is variable across the components of the system. The federal government directly funds healthcare through three schemes: Medicare, which subsidies services provided by doctors; the Pharmaceutical Benefits Scheme (PBS), which subsidizes prescription medications; and a means-tested private health insurance subsidy. Medicare is the most important pillar in delivering affordable healthcare to the entire population, but it has design features that decrease efficiency and fail to promote equity of access. For example, the level of the subsidy is generally not contingent on the price charged by the doctor. The PBS is perhaps the most successful pillar of healthcare policy in Australia, granting the Australian community access to medications at a low unit cost.
Quality of medical care in Australia is in general of a high standard, reflecting a highly skilled workforce and a strong tradition of rigorous and high-quality doctor training in public hospitals. However, several medical procedures are difficult to access for people without private health insurance. In particular, waiting periods for non-emergency operations in public hospitals can be many years. Public funding of dental care is also very limited and private dental care can be prohibitively expensive for those on low incomes without private health insurance. Consequently, dental healthcare for low-income groups is poor.
Regarding inclusiveness, significant inequality persists in access to some medical services, such as non-emergency surgery and dental care. Indigenous health outcomes are particularly poor. Lack of access to non-emergency surgery reflects, to a significant extent, the funding constraints of the states and territories, which are responsible for funding public hospitals.
Finally, concerning cost-effectiveness, the healthcare system is rife with inefficiencies and perverse incentives. Total healthcare expenditure is relatively low, but as is the case in most developed countries, the government faces significant challenges due to rising costs from an aging population and development of new diagnostic tools and treatments. The government’s Productivity Commission made a number of recommendations to improve cost-effectiveness, including eliminating low-value health interventions, adopting the principle of patient-centered care, and making better use of health system data.
Citations:
Productivity Commission five-year productivity review: https://www.pc.gov.au/inquiries/completed/productivity-review/report
Sunil K. Dixit; Murali Samasivan: A review of the Australian health care system: A policy perspective, Sage Med, April 2018, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5900819/
The Australian healthcare system is a complex mix of public and private sector healthcare provision and funding. Correspondingly, its performance on quality, inclusiveness and cost efficiency is variable across the components of the system. The federal government directly funds healthcare through three schemes: Medicare, which subsidies services provided by doctors; the Pharmaceutical Benefits Scheme (PBS), which subsidizes prescription medications; and a means-tested private health insurance subsidy. Medicare is the most important pillar in delivering affordable healthcare to the entire population, but it has design features that decrease efficiency and fail to promote equity of access. For example, the level of the subsidy is generally not contingent on the price charged by the doctor. The PBS is perhaps the most successful pillar of healthcare policy in Australia, granting the Australian community access to medications at a low unit cost.
Quality of medical care in Australia is in general of a high standard, reflecting a highly skilled workforce and a strong tradition of rigorous and high-quality doctor training in public hospitals. However, several medical procedures are difficult to access for people without private health insurance. In particular, waiting periods for non-emergency operations in public hospitals can be many years. Public funding of dental care is also very limited and private dental care can be prohibitively expensive for those on low incomes without private health insurance. Consequently, dental healthcare for low-income groups is poor.
Regarding inclusiveness, significant inequality persists in access to some medical services, such as non-emergency surgery and dental care. Indigenous health outcomes are particularly poor. Lack of access to non-emergency surgery reflects, to a significant extent, the funding constraints of the states and territories, which are responsible for funding public hospitals.
Finally, concerning cost-effectiveness, the healthcare system is rife with inefficiencies and perverse incentives. Total healthcare expenditure is relatively low, but as is the case in most developed countries, the government faces significant challenges due to rising costs from an aging population and development of new diagnostic tools and treatments. The government’s Productivity Commission made a number of recommendations to improve cost-effectiveness, including eliminating low-value health interventions, adopting the principle of patient-centered care, and making better use of health system data.
Citations:
Productivity Commission five-year productivity review: https://www.pc.gov.au/inquiries/completed/productivity-review/report
Sunil K. Dixit; Murali Samasivan: A review of the Australian health care system: A policy perspective, Sage Med, April 2018, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5900819/
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To what extent do family support policies enable women to combine parenting with participation in the labor market?
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Family support policies effectively enable women to combine parenting with employment.
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Family support policies provide some support for women who want to combine parenting and employment.
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Family support policies provide only few opportunities for women who want to combine parenting and employment.
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Family support policies force most women to opt for either parenting or employment.
Following large increases in family payments over the early 2000s, in recent years these payments have been scaled back. The high cost of childcare for children not yet at school continues to be a problem for many families in Australia. A new childcare subsidy (CCS) that commenced in 2018 increased subsidies for most families. As of December 2021, those earning AUD 70,015 or less receive a subsidy of 85% of their childcare fees. The subsidy rate gradually declines as family income increases and is zero for families with incomes in excess of AUD 354,305. Eligibility for the CCS is determined by an activity test that closely aligns the hours of subsidized care with the amount of work, training, study or any other recognized activity such as volunteering by parents. The CCS has reduced real hourly costs of childcare for parents, but costs are still more than 50% higher in real terms than at the start of the decade (2010). Rural areas still have access to less comprehensive services and as a result families in rural areas are disadvantaged.
A government-funded paid parental leave (PPL) scheme was introduced in 2011, providing 18 weeks of government-funded paid leave at the level of the full-time national minimum wage. Prior to the scheme, only 54% of female employees and 50% of male employees had access to some form of PPL. The scheme, therefore, considerably expanded access to PPL.
Welfare policy has increasingly encouraged or compelled mothers who are welfare recipients to take up employment. Starting in 2006, new single-parent recipients were transferred to the unemployment benefit once the youngest child reached eight years of age. In January 2013, this policy was applied to all recipients of Parenting Payment irrespective of when they began receiving it; in the case of partnered recipients of Parenting Payment, transfer to the unemployment benefit occurs once the youngest child reaches six years of age. With unemployment benefits, single parents receive a lower level of benefits and are required to seek employment of at least 15 hours per week. The latest program, Parents Next, addresses the risk of long-term dependency on welfare payments.
Citations:
OECD, Economic Survey Australia 2014, p. 61 and 69.
Data on childcare costs to 2017: https://www.abs.gov.au/statistics/people/education/childhood-education-and-care-australia/jun-2017
https://www.theguardian.com/australia-news/2018/nov/06/single-parents-forced-to-attend-story-time-or-lose-centrelink-payments
https://www.abc.net.au/news/2022-02-18/new-mum-cry-for-help-parliament-debate-childcare/100838760
A government-funded paid parental leave (PPL) scheme was introduced in 2011, providing 18 weeks of government-funded paid leave at the level of the full-time national minimum wage. Prior to the scheme, only 54% of female employees and 50% of male employees had access to some form of PPL. The scheme, therefore, considerably expanded access to PPL.
Welfare policy has increasingly encouraged or compelled mothers who are welfare recipients to take up employment. Starting in 2006, new single-parent recipients were transferred to the unemployment benefit once the youngest child reached eight years of age. In January 2013, this policy was applied to all recipients of Parenting Payment irrespective of when they began receiving it; in the case of partnered recipients of Parenting Payment, transfer to the unemployment benefit occurs once the youngest child reaches six years of age. With unemployment benefits, single parents receive a lower level of benefits and are required to seek employment of at least 15 hours per week. The latest program, Parents Next, addresses the risk of long-term dependency on welfare payments.
Citations:
OECD, Economic Survey Australia 2014, p. 61 and 69.
Data on childcare costs to 2017: https://www.abs.gov.au/statistics/people/education/childhood-education-and-care-australia/jun-2017
https://www.theguardian.com/australia-news/2018/nov/06/single-parents-forced-to-attend-story-time-or-lose-centrelink-payments
https://www.abc.net.au/news/2022-02-18/new-mum-cry-for-help-parliament-debate-childcare/100838760
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To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?
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Pension policy achieves the objectives fully.
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Pension policy achieves the objectives largely.
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Pension policy achieves the objectives partly.
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Pension policy does not achieve the objectives at all.
Australia has two explicit pension systems, the public age pension and private employment-related pensions. The public age pension is funded from general taxation revenue, and because it is means-tested, it effectively acts as a social safety net. Pensioners enjoy additional benefits such as access to universal healthcare, concessions on pharmaceutical and other government services, and tax concessions.
Currently, the public age pension is still the dominant source of income for retirees. Approximately 70% of people aged 65 and over receive a means-tested pension from the government. About 40% of pensioners receive a reduced government pension due to their own assets. The result is that Australian pensioners’ income is the second lowest in the OECD compared to the income of the working population. Measured income poverty of pensioners replying on public age pensions is therefore relatively high. However, over 80% of pensioners own their home. This, combined with the large expenditure subsidies they receive, means that broader poverty measures that take wealth and expenditure subsidies into account show low rates of deprivation among this group.
Over time the balance will shift toward the private pension system, which was only introduced on a large scale in 1992, and reached a minimum contribution rate of 9% of earnings only in 2002. The minimum contribution rate increased to 9.5% on 1 July 2014 and to 10% on 1 July 2021, and is scheduled to increase by 0.5 percentage points per year until it reaches 12% on 1 July 2025. Contributions to private pensions are concessionally taxed at a flat rate of 15%, and private pension income in retirement is largely tax exempt.
Population aging has increased anticipated pressures on the pension system. In response, over the period from July 2017 to July 2023, the age of eligibility for the public age pension is being progressively increased from 65 to 67 years.
In terms of intergenerational inequity, the gradual nature of the shift since 1992 from a pay-as-you-go public pension toward a private pension system supplemented by a public pension has meant that relatively little inequity has resulted between generations.
Lastly, concerning the fiscal sustainability of the pension system, while reliance on the public age pension will continue to be high for many years, in broad terms the pension system is relatively sustainable, with private pensions increasingly taking on more of the financial burden. Concerns have been raised, however, about the sustainability and equity of maintaining the largely tax-exempt status of private retirement income. More broadly, the government is concerned about the extent to which the retirement-income system is working, and will work into the future, as it should. Consequently, the Treasurer launched an independent review of the retirement income system in 2019, with the report released in November 2020. Among the findings of the review, tax concessions for superannuation were deemed to be very high for high-income individuals, both in the pre-retirement and post-retirement phases. As yet, no policy changes flowing from the review have been introduced.
Citations:
OECD, Pensions at a glance. Paris, OECD 2013. p. 68 – 70.
OECD, Pensions at a glance, Paris, OECD 2015. p. 207 – 211. http://www.keepeek.com/Digital-Asset-Management/oecd/social-issues-migration-health/pensions-at-a-glance-2015_pension_glance-2015-en#page209
Retirement income review report: https://treasury.gov.au/publication/p2020-100554
Currently, the public age pension is still the dominant source of income for retirees. Approximately 70% of people aged 65 and over receive a means-tested pension from the government. About 40% of pensioners receive a reduced government pension due to their own assets. The result is that Australian pensioners’ income is the second lowest in the OECD compared to the income of the working population. Measured income poverty of pensioners replying on public age pensions is therefore relatively high. However, over 80% of pensioners own their home. This, combined with the large expenditure subsidies they receive, means that broader poverty measures that take wealth and expenditure subsidies into account show low rates of deprivation among this group.
Over time the balance will shift toward the private pension system, which was only introduced on a large scale in 1992, and reached a minimum contribution rate of 9% of earnings only in 2002. The minimum contribution rate increased to 9.5% on 1 July 2014 and to 10% on 1 July 2021, and is scheduled to increase by 0.5 percentage points per year until it reaches 12% on 1 July 2025. Contributions to private pensions are concessionally taxed at a flat rate of 15%, and private pension income in retirement is largely tax exempt.
Population aging has increased anticipated pressures on the pension system. In response, over the period from July 2017 to July 2023, the age of eligibility for the public age pension is being progressively increased from 65 to 67 years.
In terms of intergenerational inequity, the gradual nature of the shift since 1992 from a pay-as-you-go public pension toward a private pension system supplemented by a public pension has meant that relatively little inequity has resulted between generations.
Lastly, concerning the fiscal sustainability of the pension system, while reliance on the public age pension will continue to be high for many years, in broad terms the pension system is relatively sustainable, with private pensions increasingly taking on more of the financial burden. Concerns have been raised, however, about the sustainability and equity of maintaining the largely tax-exempt status of private retirement income. More broadly, the government is concerned about the extent to which the retirement-income system is working, and will work into the future, as it should. Consequently, the Treasurer launched an independent review of the retirement income system in 2019, with the report released in November 2020. Among the findings of the review, tax concessions for superannuation were deemed to be very high for high-income individuals, both in the pre-retirement and post-retirement phases. As yet, no policy changes flowing from the review have been introduced.
Citations:
OECD, Pensions at a glance. Paris, OECD 2013. p. 68 – 70.
OECD, Pensions at a glance, Paris, OECD 2015. p. 207 – 211. http://www.keepeek.com/Digital-Asset-Management/oecd/social-issues-migration-health/pensions-at-a-glance-2015_pension_glance-2015-en#page209
Retirement income review report: https://treasury.gov.au/publication/p2020-100554
Graph View
How effectively do policies support the integration of migrants into society?
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Cultural, education and social policies effectively support the integration of migrants into society.
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Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
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Cultural, education and social policies do not focus on integrating migrants into society.
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Cultural, education and social policies segregate migrant communities from the majority society.
Prior to 2020, Australia maintained one of the largest immigration programs relative to population size of any established democracy in the post-World War II era. Nearly 30% of the population is foreign-born. Successful integration of immigrants has therefore been a policy priority for much of Australia’s history. In general, Australia has and continues to be highly successful in integrating immigrants. The most important contributor to this success has been a highly selective immigration policy. Most migrants are selected on the basis of their skills and English language ability. Australia is more successful than most OECD countries regarding the integration of migrants into the labor market. The effect has been a swift integration into Australian society. The selection of migrants and limited access to welfare payments, combined with a cosmopolitan society, have demonstrated above average success. Integration via the labor market has been a key factor in the integration of migrants.
Concerns arose in the years leading up to the pandemic about the large number of temporary skilled immigrants. Historically, immigration in Australia has been conceived as permanent resettlement, and the phenomenon of large numbers of temporary immigrants is relatively new, only taking on significant proportions this century. Granting of temporary migrant visas peaked around 2014, when more than 100,000 visas were issued. By its nature, the temporary-immigration program is not geared toward long-term integration of immigrants, creating some potential for breakdown in social cohesion. However, in the last several years leading up to 2020, the government introduced regulations and fees which have reduced the number of temporary visas issued. A rising level of skepticism toward migration is evident in the country, which may have helped Prime Minister Morrison, who promised a cap on migration, to win the last election.
Despite Australia’s highly selective immigration policy, an ongoing concern relates to asylum-seekers who have usually arrived on boats from Southeast Asia. Mandatory detention was introduced for asylum-seekers in the 1990s, and offshore processing of asylum-seekers was reinstated in 2012. Following the 2013 election, the Coalition introduced Operation Sovereign Borders, under which the Australian navy prevents all vessels containing asylum-seekers from reaching Australia. While politically very controversial, the policy appears to have been effective in dramatically reducing the number of asylum-seekers attempting to arrive by boat. Tight control of Australia’s borders arguably strengthens the political support for continued high levels of skilled and business immigration.
Since the onset of the pandemic, net overseas migration has been negative and it remains to be seen if pre-pandemic immigration levels return.
Citations:
http://www.smh.com.au/federal-politics/political-news/asylum-seeker-boat-turnbacks-supported-by-71-per-cent-in-poll-20140603-39h2a.html
https://www.justlanded.com/english/Australia/Australia-Guide/Jobs/Unemployment-Benefit
http://www.theaustralian.com.au/national-affairs/immigration/dramatic-decrease-in-asylumseeker-deaths/news-story/0967f643c9a38e09d36d0ad1c28c8a54
Immigration statistics and forecasts: https://population.gov.au/data-and-forecasts/key-data-releases/overseas-migration-2020-21
https://www.theguardian.com/australia-news/2019/mar/20/morrison-says-capping-migration-at-160000-is-to-save-budget-bottom-line
Concerns arose in the years leading up to the pandemic about the large number of temporary skilled immigrants. Historically, immigration in Australia has been conceived as permanent resettlement, and the phenomenon of large numbers of temporary immigrants is relatively new, only taking on significant proportions this century. Granting of temporary migrant visas peaked around 2014, when more than 100,000 visas were issued. By its nature, the temporary-immigration program is not geared toward long-term integration of immigrants, creating some potential for breakdown in social cohesion. However, in the last several years leading up to 2020, the government introduced regulations and fees which have reduced the number of temporary visas issued. A rising level of skepticism toward migration is evident in the country, which may have helped Prime Minister Morrison, who promised a cap on migration, to win the last election.
Despite Australia’s highly selective immigration policy, an ongoing concern relates to asylum-seekers who have usually arrived on boats from Southeast Asia. Mandatory detention was introduced for asylum-seekers in the 1990s, and offshore processing of asylum-seekers was reinstated in 2012. Following the 2013 election, the Coalition introduced Operation Sovereign Borders, under which the Australian navy prevents all vessels containing asylum-seekers from reaching Australia. While politically very controversial, the policy appears to have been effective in dramatically reducing the number of asylum-seekers attempting to arrive by boat. Tight control of Australia’s borders arguably strengthens the political support for continued high levels of skilled and business immigration.
Since the onset of the pandemic, net overseas migration has been negative and it remains to be seen if pre-pandemic immigration levels return.
Citations:
http://www.smh.com.au/federal-politics/political-news/asylum-seeker-boat-turnbacks-supported-by-71-per-cent-in-poll-20140603-39h2a.html
https://www.justlanded.com/english/Australia/Australia-Guide/Jobs/Unemployment-Benefit
http://www.theaustralian.com.au/national-affairs/immigration/dramatic-decrease-in-asylumseeker-deaths/news-story/0967f643c9a38e09d36d0ad1c28c8a54
Immigration statistics and forecasts: https://population.gov.au/data-and-forecasts/key-data-releases/overseas-migration-2020-21
https://www.theguardian.com/australia-news/2019/mar/20/morrison-says-capping-migration-at-160000-is-to-save-budget-bottom-line
Graph View
How effectively does internal security policy protect citizens against security risks?
10
9
9
Internal security policy protects citizens against security risks very effectively.
8
7
6
7
6
Internal security policy protects citizens against security risks more or less effectively.
5
4
3
4
3
Internal security policy does not effectively protect citizens against security risks.
2
1
1
Internal security policy exacerbates the security risks.
Internal security is primarily the responsibility of the states and there is correspondingly some variation in policies and outcomes across them. In most states crime rates are relatively low. Coordination between various policing, enforcement and intelligence-gathering authorities is generally satisfactory.
The issue of violence against women has been receiving increasing attention in recent years. One-third of women in Australia have experienced physical violence. The 2021-22 budget included an additional AUD 1.1 billion for women’s safety measures.
Since 2014, a variety of bills concerned with countering terrorism have been passed, including the Counter-Terrorism Legislation Amendment (Foreign Fighters) Bill 2014, the Telecommunications (Interception and Access) Amendment (Data Retention) Act 2015, the Australian Citizenship Amendment (Allegiance to Australia) Bill 2016 and the Counter-Terrorism (Temporary Exclusion Orders) Bill 2019.
The most controversial legislation is the Telecommunications and Other Legislation Amendment (Assistance and Access) Act, passed in December 2018, which requires technology companies and telecommunications providers to give reasonable assistance to law-enforcement agencies seeking to access communication content and data. Many experts have argued this act is ineffectual in countering criminal activity, while simultaneously weakening encryption of data and therefore reducing the security of Australians, for example by making them more vulnerable to hackers.
In July 2017, the prime minister announced that the government would establish a home-affairs portfolio bringing together Australia’s immigration, border-protection, law-enforcement and domestic-security agencies within a single portfolio. The new portfolio is more similar to the UK model than the U.S. model – a federation of border and security agencies under which the various agencies retain statutory independence.
Citations:
http://www.internationalaffairs.org.au/australianoutlook/australian-government-missed-point-with-new-encryption-bill/
https://www.homeaffairs.gov.au/
https://www.bbc.com/news/world-australia-46913913
The issue of violence against women has been receiving increasing attention in recent years. One-third of women in Australia have experienced physical violence. The 2021-22 budget included an additional AUD 1.1 billion for women’s safety measures.
Since 2014, a variety of bills concerned with countering terrorism have been passed, including the Counter-Terrorism Legislation Amendment (Foreign Fighters) Bill 2014, the Telecommunications (Interception and Access) Amendment (Data Retention) Act 2015, the Australian Citizenship Amendment (Allegiance to Australia) Bill 2016 and the Counter-Terrorism (Temporary Exclusion Orders) Bill 2019.
The most controversial legislation is the Telecommunications and Other Legislation Amendment (Assistance and Access) Act, passed in December 2018, which requires technology companies and telecommunications providers to give reasonable assistance to law-enforcement agencies seeking to access communication content and data. Many experts have argued this act is ineffectual in countering criminal activity, while simultaneously weakening encryption of data and therefore reducing the security of Australians, for example by making them more vulnerable to hackers.
In July 2017, the prime minister announced that the government would establish a home-affairs portfolio bringing together Australia’s immigration, border-protection, law-enforcement and domestic-security agencies within a single portfolio. The new portfolio is more similar to the UK model than the U.S. model – a federation of border and security agencies under which the various agencies retain statutory independence.
Citations:
http://www.internationalaffairs.org.au/australianoutlook/australian-government-missed-point-with-new-encryption-bill/
https://www.homeaffairs.gov.au/
https://www.bbc.com/news/world-australia-46913913
Graph View
To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?
10
9
9
The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
8
7
6
7
6
The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
5
4
3
4
3
The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
2
1
1
The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
Australia plays a significant role in the South Pacific with regard to promoting economic development and poverty alleviation in less developed countries. Australia is also a strong advocate of trade liberalization, especially in relation to agricultural products, which is critically important to economic development in most developing countries.
The 2014 government budget included cuts to foreign aid of AUD 7.6 billion over five years, which arguably represents a backward step in promoting economic opportunities in developing countries. However, since 2017, the increasingly aggressive foreign policy of China has resulted in some expansion of Australia’s regional aid programs.
Due to its status as a middle-sized power, Australia lacks leverage on some issues. For example, it has been unable to provide a major impetus to further development of the multilateral trading system. Australian governments have supported the multilateral trading system rhetorically, but at the same time have contributed to the weakening of the WTO by implementing a number of preferential trade agreements. Australia has concluded free trade agreements with all major economies in Asia (ASEAN, South Korea, China and Japan).
In the South Pacific, Australia has increased its activities and is attempting to counter Chinese investments.
Citations:
http://www.dfat.gov.au/fta/
Rod McGuirck: Australia details investment in Pacific as China clout grows. AP News. 8 November 2018. Available at https://www.apnews.com/cf3404ef6f4b404197e83066179aa4f4
https://www.abc.net.au/news/2021-09-29/pacific-lowy-institute-aid-development-china-influence/100498518
The 2014 government budget included cuts to foreign aid of AUD 7.6 billion over five years, which arguably represents a backward step in promoting economic opportunities in developing countries. However, since 2017, the increasingly aggressive foreign policy of China has resulted in some expansion of Australia’s regional aid programs.
Due to its status as a middle-sized power, Australia lacks leverage on some issues. For example, it has been unable to provide a major impetus to further development of the multilateral trading system. Australian governments have supported the multilateral trading system rhetorically, but at the same time have contributed to the weakening of the WTO by implementing a number of preferential trade agreements. Australia has concluded free trade agreements with all major economies in Asia (ASEAN, South Korea, China and Japan).
In the South Pacific, Australia has increased its activities and is attempting to counter Chinese investments.
Citations:
http://www.dfat.gov.au/fta/
Rod McGuirck: Australia details investment in Pacific as China clout grows. AP News. 8 November 2018. Available at https://www.apnews.com/cf3404ef6f4b404197e83066179aa4f4
https://www.abc.net.au/news/2021-09-29/pacific-lowy-institute-aid-development-china-influence/100498518