Australia

   

Social Sustainability

#15
Key Findings
In the category of social sustainability, Australia falls into the sample’s middle ranks (rank 15).

Student performance has declined in recent years. The school system features significant geographical and gender disparities, and teacher pay is low. Public services are generally available with weaknesses in some remote areas. Urban residents are grappling with a severe housing shortage, driving up prices and rental rates.

The healthcare system is among the world’s best for quality and affordability. Numerous programs support gender equality and families, including substantial childcare subsidies. Pensions are viewed as generally adequate and sustainable.

The large migrant population skews toward skilled workers. The country’s integration approach is highly ranked in terms of its ability to secure equal rights, opportunities and security for immigrants.

Sustainable Education System

#22

To what extent do policies and regulations in the education system hinder or facilitate high-quality education and training?

10
 9

Education policies are fully aligned with the goal of ensuring high-quality education and training.
 8
 7
 6


Education policies are largely aligned with the goal of ensuring high-quality education and training.
 5
 4
 3


Education policies are only somewhat aligned with the goal of ensuring high-quality education and training.
 2
 1

Education policies are not at all aligned with the goal of ensuring high-quality education and training.
Policies Targeting Quality Education
6
Australia has a high-quality tertiary education sector, though existing policies (e.g., fee structure) have posed challenges to quality and equity. Equity remains a serious and ongoing issue in schools.

Australian education has significant strengths, including progressive, student-centered pedagogies and well-resourced, high-performing universities (Debroy 2018). However, the higher education sector was heavily hit by the pandemic, which interrupted the flow of international students, traditionally a major revenue source (Norton 2023). The sector has had to adjust to a major change in the fee structure, doubling the price of some degrees while reducing others. The income-contingent loans system for higher education tuition, whereby repayments are made through the income tax system on a progressive scale, means the fee increases do not directly increase barriers to enrollment. However, they lead to increased student debts and effectively higher income tax rates for graduates for many more years. The sector has also been criticized for its high rates of casualization and other workforce issues impacting education quality.

Australian schools have seen a decline in student performance in international assessments, with commentators identifying inequality – especially geographical differences in school quality and gender differences (underperforming boys) – as major problems (Hare 2022). Inequity in access to quality education persists, with public schools chronically underfunded while well-resourced private schools receive considerable subsidies (Hare 2024). Progress on rectifying these inequities has been slow. Teacher pay is relatively low compared with other skilled professions, inhibiting the recruitment of high-quality educators. Staff well-being has also been a major concern in Australian schools.

The challenges and opportunities of artificial intelligence (AI) are a significant area of debate across both university and school sectors. The government has recently endorsed AI use in public schools, publishing a new framework to guide its responsible and ethical use (Cassidy 2023). Priorities for the framework include ensuring AI supports teacher-student interactions rather than supplanting them and substantially upskilling teachers in AI competency. The Tertiary Education and Standards Authority (TEQSA) has adopted a similar stance for the higher education sector, developing principles and practices to incorporate AI into teaching (TEQSA 2023).

Citations:
Cassidy, C. 2023. “Artificial Intelligence Such as ChatGPT to Be Allowed in Australian Schools from 2024.” The Guardian October 6. https://www.theguardian.com/australia-news/2023/oct/06/chatgpt-ai-allowed-australian-schools-2024

TEQSA. 2023. “Artificial Intelligence.” https://www.teqsa.gov.au/guides-resources/higher-education-good-practice-hub/artificial-intelligence

Debroy, A. 2018. “5 Best Things about Australian Education That Other Nations Can Emulate.” Ed Tech Review August 24. https://www.edtechreview.in/trends-insights/insights/5-best-things-about-australian-education-that-other-nations-can-emulate

Norton, A. 2023. Mapping Australian Higher Education 2023. ANU Centre for Social Research and Methods. https://csrm.cass.anu.edu.au/sites/default/files/docs/2023/10/Mapping_Australian_higher_education_2023_005.pdf

Hare, J. 2022. “Why Australia’s Students Keep Falling Behind.” Financial Review September 30. https://www.afr.com/work-and-careers/education/why-australia-s-students-keep-falling-behind-20220928-p5blna

Hare, J. 2024. “Underfunding of Public Schools Fuels Achievement Gap, Analysis Shows.” Financial Review January 23. https://www.afr.com/work-and-careers/education/underfunding-of-public-schools-fuels-achievement-gap-analysis-shows-20240122-p5ez47

To what extent does the current policy approach in the education system hinder or facilitate equitable access to high-quality education and training?

10
 9

Education policies are fully aligned with the goal of ensuring equitable access to high-quality education and training.
 8
 7
 6


Education policies are largely aligned with the goal of ensuring equitable access to high-quality education and training.
 5
 4
 3


Education policies are only somewhat aligned with the goal of ensuring equitable access to high-quality education and training.
 2
 1

Education policies are not at all aligned with the goal of ensuring equitable access to high-quality education and training.
Policies Targeting Equitable Access to Education
5
Australia’s educational resources and opportunities are not equally available to all students.

In schools, significant geographical and gender disparities exist, with boys underperforming relative to girls (Hare 2022). Geographic disparities reflect broader inequities in resources available to government schools compared with non-government schools (Hare 2024).

Child care and early childhood development are mostly delivered by private providers. While heavily subsidized, fees remain a considerable barrier to uptake. State governments provide kindergarten for children aged 4, and in some states for children aged 3, typically under 16 hours per week. Fees vary across jurisdictions, and attendance is below 100% as kindergarten is not compulsory.

In the university sector, significant geographical divides persist, with urban youth more likely to attend university than rural counterparts (O’Shea 2023). Indigenous communities face significant educational disadvantages. However, the deferred-repayment system for levying tuition fees (the Higher Education Contribution Scheme and the Higher Education Loan Program) and the availability of income support for students in the form of Youth Allowance, Austudy and Abstudy, mean that barriers to attendance for disadvantaged students are relatively low (Norton 2023). The persistence of under-representation of students from disadvantaged backgrounds in higher education and other inequities, largely stem from sources unconnected to the higher education system itself, such as disparities in access to high-quality schooling.

There are multiple pathways to both vocational education and higher education, and mature-age entry into post-school education is common.

Citations:
Hare, J. 2022. “Why Australia’s Students Keep Falling Behind.” Financial Review September 30. https://www.afr.com/work-and-careers/education/why-australia-s-students-keep-falling-behind-20220928-p5blna

O’Shea, S. 2023. “These 5 equity ideas should be at the heart of the Universities Accord.” The Conversation. https://theconversation.com/these-5-equity-ideas-should-be-at-the-heart-of-the-universities-accord-203418

Norton, A. 2023. Mapping Australian Higher Education 2023. Canberra: ANU Centre for Social Research and Methods. https://csrm.cass.anu.edu.au/sites/default/files/docs/2023/10/Mapping_Australian_higher_education_2023_005.pdf

Hare, J. 2024. “Underfunding of Public Schools Fuels Achievement Gap, Analysis Shows.” Financial Review January 23. https://www.afr.com/work-and-careers/education/underfunding-of-public-schools-fuels-achievement-gap-analysis-shows-20240122-p5ez47

Sustainable Institutions Supporting Basic Human Needs

#15

To what extent do existing institutions ensure equal access to essential services and basic income support for those in need?

10
 9

Existing essential public services and basic income support are fully aligned with the goal of ensuring equal access for those in need.
 8
 7
 6


Existing essential public services and basic income support are largely aligned with the goal of ensuring equal access for those in need.
 5
 4
 3


Existing essential public services and basic income support are only somewhat aligned with the goal of ensuring equal access for those in need.
 2
 1

Existing essential public services and basic income support are not at all aligned with the goal of ensuring equal access for those in need.
Policies Targeting Equal Access to Essential Services and Basic Income Support
6
Essential public services, such as water, energy, and infrastructure, are generally available throughout Australia, but significant gaps remain. Notably, there are weaknesses in service provision in regional areas, particularly remote Aboriginal and Torres Strait Islander communities. Poor delivery of essential services affects 17.6% of Indigenous Australians in remote areas compared to 1.5% of non-Indigenous Australians (Infrastructure Partnerships Australia 2022). Similarly, approximately 11% of Australians are “highly excluded” from digital services, either because they lack access to affordable internet or don’t know how to use it. This digitally excluded population is heavily concentrated in rural regions (Parke 2022).

Although urban area residents are well-serviced with regard to most essential services, they currently face a serious housing shortage, with demand causing rapid rises in prices and rental rates. Policymakers have historically neglected housing policy, resulting in insufficient accommodation in cities like Sydney, Melbourne, and Brisbane (Parsell et al. 2023). The stock of social housing has declined since the 1990s, falling from 6% to below 4% of total housing stock in cities. During the pandemic, governments committed substantial resources to ease renters’ and the homeless’s problems, viewing housing as a human right. Parsell et al. conclude that solutions are possible through government intervention, regulation and funding, integrated and innovative service delivery, private-sector support, and local community action.

Basic income support (e.g., unemployment benefits) is accessible to all permanent residents (excluding immigrants resident in Australia for less than four years), with payments not time-limited. Benefit levels are widely known and include concession cards for cheaper access to goods and services (including healthcare, energy, and public transport). Renters in the private market can receive Commonwealth Rent Assistance. However, income support payments are subject to strict income and assets tests, and benefit Levels, while indexed to inflation, are considered inadequate for achieving a minimum acceptable living standard despite significant real increases in 2021 and 2023 (Karp 2023).

Citations:
Parsell, C., Kuskoff, E., and Reddel, T. 2023. “Australia’s Housing Crisis.” Contact Magazine, The University of Queensland. https://stories.uq.edu.au/contact-magazine/2023/australias-housing-crisis-how-did-we-get-here-where-to-now/index.html

Infrastructure Partnerships Australia. 2022. Remote communities: Improving access to essential services. Sydney: Infrastructure Partnerships Australia.
https://infrastructure.org.au/wp-content/uploads/2022/12/Remote-communities-Improving-access-to-essential-services.pdf
https://infrastructure.org.au/tools-resources/videos/remote-communities-improving-access-to-essential-services/

Evans, P. 2023. New data shows the scale of Australia’s housing crisis. News.com.au, 12 November
https://www.news.com.au/finance/economy/australian-economy/new-data-shows-the-scale-of-australias-housing-crisis/news-story/e5179f26dc2520db542c028dc3fd7028#:~:text=Australia%27s%20rental%20crisis%20is%20getting,falls%20to%20a%20record%20low.&text=More%20Australians%20in%20the%20grip,a%20single%20spare%20room%20available

Parke, E. 2022. “Australia’s Digital Divide Means 2.8 Million People Remain ‘Highly Excluded’ from Internet Access.” ABC News October 16. https://www.abc.net.au/news/2022-10-16/australia-digital-divide-millions-cannot-access-internet/101498042

https://www.news.com.au/finance/economy/australian-economy/new-data-shows-the-scale-of-australias-housing-crisis/news-story/e5179f26dc2520db542c028dc3fd7028#:~:text=Australia%27s%20rental%20crisis%20is%20getting,falls%20to%20a%20record%20low.&text=More%20Australians%20in%20the%20grip,a%20single%20spare%20room%20available

Karp, P. 2023. “Government Ignores Calls from Its Own Experts to Lift ‘Seriously Inadequate’ Jobseeker Rate.” The Guardian April 18. https://www.theguardian.com/australia-news/2023/apr/18/government-will-not-lift-seriously-inadequate-jobseeker-rate-despite-calls-from-its-own-experts

To what extent do existing institutions and policies ensure high-quality services and basic income support?

10
 9

Existing essential public services and basic income support are fully aligned with the goal of satisfying basic human needs.
 8
 7
 6


Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.
 5
 4
 3


Existing essential public services and basic income support are only somewhat aligned with the goal of satisfying basic human needs.
 2
 1

Existing essential public services and basic income support are not at all aligned with the goal of satisfying basic human needs.
Policies Targeting Quality of Essential Services and Basic Income Support
6
Australia’s sustained economic growth has generated high levels of public services for most of the population. However, gaps remain, especially in regional areas. Government safety net programs support zero/low-income families and individuals in obtaining essential services. Although the number of people requiring these services has decreased over time, those who do need them face a growing gap between their needs and what programs like JobSeeker and Parent Payments provide (Phillips and Narayanan 2022).

Housing availability and affordability have been significant issues, particularly in urban areas. Governments at both national and state levels have recently taken steps to address these issues. Measures include agreements to align efforts of governments, the construction sector, and institutional investors to rapidly increase affordable homes within five years and boost amenities and services to support this housing stock (AIHW 2023).

Citations:
Phillips, B., and Narayanan, V. 2022. “Financial Stress and Social Security Settings in Australia.” ANU Centre for Social Research and Methods. https://csrm.cass.anu.edu.au/sites/default/files/docs/2021/4/Financial_Stress_and_Social_Security_Settings_in_Australia_PDF.pdf

AIHW. 2023. “Housing assistance in Australia.” https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia/contents/housing-assistance

Sustainable Health System

#6

To what extent does current health policy hinder or facilitate health system resilience?

10
 9

Health policies are fully aligned with the goal of achieving a resilient health system.
 8
 7
 6


Health policies are largely aligned with the goal of achieving a resilient health system.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving a resilient health system.
 2
 1

Health policies are not at all aligned with the goal of achieving a resilient health system.
Policies Targeting Health System Resilience
7
Australia has a high-performing health system, often regarded as among the best in the world for its quality and affordability. The OECD Health at a Glance (2023) indicators show that Australia performs above the OECD average in 93% of health status indicators, including life expectancy and preventable mortality rates. With an average life expectancy of 83.3 years, Australians generally live three years longer than the OECD average. Along similar lines, the preventable mortality rate was 97 per 100,000 as compared to the OECD average of 158. Australia also performs better than average in terms of indicators of healthcare quality (e.g., 30-day mortality after stroke is 4.8%, as compared with the OECD average of 7.8%) and healthcare access (e.g., the whole population is covered for a core set of service and 71% of people are satisfied with the availability of healthcare services, as compared with the OECD average of 67% of healthcare performance and access).

Despite this strong performance, the health system faces significant pressures from rising costs due to an aging population and increasing chronic diseases, uneven access to services based on income and geography, and gaps in workforce and infrastructure (Butler et al. 2019). The system is also challenged by changing demands, as consumers of health services expect not only cutting-edge treatments but also more personalized and integrated services. Moreover, dental care remains an important gap in the healthcare system, with little public provision and minimal subsidies for privately provided dental care, even for the most vulnerable in the community.

The government is addressing some challenges by investing heavily in medical technology and research through the Medical Research Future Fund (Australian Government 2019) and improving data integration in healthcare provision. There have also been advancements in data connections between different program and services to improve the integration of healthcare provision.

Digital innovations like My Health Record have improved health providers’ ability to coordinate care, although the full potential for improved care and the identification of public health threats remains unrealized.

Citations:
OECD. 2023. Health at a Glance 2023. OECD. https://www.oecd.org/health/health-at-a-glance/

Butler, S., Daddia, J., and Azizi, T. 2019. “The time to act is now.” https://www.pwc.com.au/health/health-matters/the-future-of-health-in-australia.html

Australian Government. 2019. “The Australian Health System.” https://www.health.gov.au/about-us/the-australian-health-system

Australian Digital Health Agency. 2024. “Outcomes.” https://www.digitalhealth.gov.au/national-digital-health-strategy

To what extent does current health policy hinder or facilitate achieving high-quality healthcare?

10
 9

Health policies are fully aligned with the goal of achieving high-quality healthcare.
 8
 7
 6


Health policies are largely aligned with the goal of achieving high-quality healthcare.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving high-quality healthcare.
 2
 1

Health policies are not at all aligned with the goal of achieving high-quality healthcare.
Policies Targeting High-Quality Healthcare
7
A well-organized and well-funded healthcare system supports high-quality outcomes. However, challenges remain, particularly in how costs are divided between the state and individual users, with some approaches leading to increased health inequality.

The healthcare system is designed to achieve high-quality care through effective structuring across different government levels and varying degrees of decentralization (Department of Health and Aged Care 2019). The national government is responsible for monitoring the quality, effectiveness, and efficiency of primary healthcare providers. It also collects and publishes health-related information and statistics and funds health and medical research. States, territories, and local governments manage public hospitals. Primary health networks coordinate health services in local areas and oversee health centers, GPs, nurses, specialists, and other health professionals. This division of responsibilities aims to leverage the unique resources and strengths of each entity involved in managing the healthcare system. Overlaying these divisions is a complex distribution of responsibilities between public and private health providers. While the system functions effectively, it faces challenges such as integration issues due to its complexity and rising costs, which are reflected in increasing out-of-pocket expenses for services and rising private health insurance premiums (Butler et al. 2019).

Citations:
Department of Health and Aged Care. 2019. “The Australian Health System.” https://www.health.gov.au/about-us/the-australian-health-system

Butler, S., Daddia, J., and Azizi, T. 2019. “The time to act is now.” https://www.pwc.com.au/health/health-matters/the-future-of-health-in-australia.html

To what extent does current health policy hinder or facilitate equitable access to high-quality healthcare?

10
 9

Health policies are fully aligned with the goal of achieving equitable access to high-quality healthcare.
 8
 7
 6


Health policies are largely aligned with the goal of achieving equitable access to high-quality healthcare.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving equitable access to high-quality healthcare.
 2
 1

Health policies are not at all aligned with the goal of achieving equitable access to high-quality healthcare.
Policies Targeting Equitable Access to Healthcare
6
The Medicare system and the Pharmaceutical Benefits scheme together do a reasonably good job in promoting equitable access to high-quality healthcare. Nonetheless, there are important deficiencies (Butler et al. 2019). For those residing outside major cities, access to medical care is significantly less developed. This is primarily due to difficulties in attracting healthcare workers to these regions, despite efforts to encourage them. Additionally, there are substantial disparities in healthcare service provision and outcomes across socioeconomic groups and between Australia’s Indigenous and non-Indigenous populations. Consequently, the burden of risk factors is unequally distributed. For instance, obesity (high body mass index) is the leading risk factor in the population. While 31% of Australians live with obesity, the figure rises to 43% among Indigenous people. (The Lancet Public Health 2023).

Citations:
Butler, S., Daddia, J., Azizi, T. 2019. “The time to act is now.” https://www.pwc.com.au/health/health-matters/the-future-of-health-in-australia.html

The Lancet Public Health. 2023. “Health and Inequity in Australia.” The Lancet 8 (8): E575. https://www.thelancet.com/journals/lanpub/article/PIIS2468-2667(23)00157-3/fulltext

Gender Equality

#12

How committed is the government to ensuring gender equality in all respects?

10
 9

The government is clearly committed to the goal of ensuring gender equality.
 8
 7
 6


The government is largely committed to the goal of ensuring gender equality.
 5
 4
 3


The government is only somewhat committed to the goal of ensuring gender equality.
 2
 1

The government is not at all committed to the goal of ensuring gender equality.
Policy Efforts and Commitment to Achieving Gender Equality
7
Australian governments have made strong statements supporting gender equality, involving several agencies, including the Australian Human Rights Commission and the Fair Work Commission, in promoting this cause. Key government departments have developed strategies to advance gender equality, foremost among them being the National Strategy to Achieve Gender Equality. Sponsored by the prime minister and Cabinet and developed by the Office for Women, this strategy adopts a ‘whole-of-community’ perspective, incorporating the perspectives of women and girls from diverse communities. Currently in its consultation phase, the strategy has engaged with First Nations people, people living with disabilities, LGBTQ+ individuals, culturally and linguistically diverse people, migrant and refugee women, women in regional and remote areas, older women, and young women and girls (PMC 2023a).

Another significant initiative is the Women’s Economic Equality Taskforce, established in September 2022 to guide the government on prioritizing actions to achieve gender equality in the economy. The Taskforce’s 10-Year Plan recommends greater government leadership and accountability in embedding gender equity into policy design, implementation, and evaluation; investing in policies that highlight the social value of care work and support families with caring responsibilities; and using regulatory and spending powers to create and maintain safe, secure, flexible, and equitable workplaces to enable women’s economic participation (PMC 2023b).

Another significant initiative is the Women’s Economic Equality Taskforce, established in September 2022 to guide the government on prioritizing actions to achieve gender equality in the economy. The Taskforce’s 10-Year Plan recommends greater government leadership and accountability in embedding gender equity into policy design, implementation, and evaluation; investing in policies that highlight the social value of care work and support families with caring responsibilities; and using regulatory and spending powers to create and maintain safe, secure, flexible, and equitable workplaces to enable women’s economic participation (Parliament of Australia 2023).

Citations:
PMC. 2023a. “Working for Women: A Strategy for Gender Equality.” https://www.pmc.gov.au/office-women/national-strategy-achieve-gender-equality

PMC. 2023b. “Women’s Economic Equality Taskforce.” https://www.pmc.gov.au/office-women/womens-economic-equality/womens-economic-equality-taskforce

WGEA. 2023. “The ABS Data Gender Pay Gap.” Workplace Gender Equality Agency, Australian Government. https://www.wgea.gov.au/data-statistics/ABS-gender-pay-gap-data

ABS. 2023. “Average Weekly Earning, Australia.” Australian Bureau of Statistics. https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/average-weekly-earnings-australia/latest-release

Australian Human Rights Commission. 2023. “Gender Equality.” https://humanrights.gov.au/quick-guide/12038

Parliament of Australia. 2023. Workplace Gender Equality Amendment 2023. Parliament of Australia. https://www.aph.gov.au/Parliamentary_Business/Bills_LEGislation/Bills_Search_Results/Result?bId=s1363

Strong Families

#16

To what extent does the current family policy approach support or hinder unpaid family care work?

10
 9

Family policies are fully aligned with the goal of creating the conditions for strong families.
 8
 7
 6


Family policies are largely aligned with the goal of creating the conditions for strong families.
 5
 4
 3


Family policies are only somewhat aligned with the goal of creating the conditions for strong families.
 2
 1

Family policies are not at all aligned with the goal of creating family-friendly conditions.
Family Policies
7
The Australian government provides numerous programs and benefit schemes to support families (Department of Social Services 2024), including the family tax benefit, paid parental leave, and substantial childcare subsidies. However, commentators argue that more needs to be done to support families juggling work and child-rearing commitments. For example, the Australian Human Rights Commission has argued that significant improvements can be made to make workplaces more family-friendly, such as flexible working arrangements and job re-design, and that existing policies do not adequately recognize unpaid caring work. Protections for people taking parental leave to ensure they can return to their job exist but are not comprehensive and can be circumvented by employers.

There have been some improvements in recent years, such as introduction and expansion of a government-funded paid parental leave scheme and increased childcare subsidies. However, family benefits like the Family Tax Benefit have become less generous and increasingly only available to low-income families. Despite increased childcare subsidies, out-of-pocket expenses remain high.

Policy settings do not promote dual caring for children, as the paid parental leave scheme is geared around one primary carer. Labor economist Barbara Broadway highlights issues in the relationship between the family benefits system and the tax system (Broadway 2023), showing that under current arrangements, a family with two working parents can be financially worse off than a family with one working parent, despite having the same total income. This inequity, caused by childcare costs and loss of benefits when a parent returns to work, disproportionately affects women, who are more likely to give up work. To address this issue and improve equity and women’s labor market participation, reforms are needed in the tax and family benefits systems. One component of family benefits, Family Tax Benefit Part B, is based on individual circumstances rather than family circumstances. Moving the focus to families in benefit assessment and consolidating and simplifying the range of benefits would improve the family support system.

Citations:
Broadway, B. 2023. “Time to Reform Australia’s Unfair Family Support System.” Pursuit March 16. https://pursuit.unimelb.edu.au/articles/time-to-reform-australia-s-unfair-family-support-system

Department of Social Services. 2024. “Families and children.” https://www.dss.gov.au/our-responsibilities/families-and-children/programmes-services/family-finance

Sustainable Pension System

#18

To what extent does the current pension policy approach prevent poverty among senior citizens?

10
 9

Pension policies are fully aligned with the goal of preventing old-age poverty.
 8
 7
 6


Pension policies are largely aligned with the goal of preventing old-age poverty.
 5
 4
 3


Pension policies are only somewhat aligned with the goal of preventing old-age poverty.
 2
 1

Pension policies are not at all aligned with the goal of preventing old-age poverty.
Policies Aimed at Old-Age Poverty Prevention
8
Australia’s retirement income system consists of a means-tested age pension paid from general government revenue, mandatory employer contributions to private-sector superannuation accounts, and additional voluntary contributions from employers, employees, and the self-employed into these private sector plans. The Age Pension supports the basic living standards of older Australians and is targeted through the means test to those who need it most, with rates indexed to keep pace with price and wage increases. A recent Retirement Income Review found the system effective and broadly sustainable but noted areas for improvement, such as introducing a government superannuation contribution for primary carers of young children (Superguide 2020). The private sector superannuation system is large and complex, with potential benefits from rationalization to reduce costs and simplify the system (Murray 2020).

For retirees reliant on the Age Pension, income is generally adequate for those who own their homes but insufficient for the approximately 20% of retirees renting in the private market. It is argued that Commonwealth Rent Assistance should be increased. The current Labor government increased CRA by 15% in July 2023, but this was widely regarded as insufficient.

Citations:
Murray, C. 2020. “Superannuation isn’t a retirement income system – we should scrap it.” The Conversation. https://theconversation.com/superannuation-isnt-a-retirement-income-system-we-should-scrap-it-130191?gclid=CjwKCAiA1fqrBhA1EiwAMU5m_zZsQvUtaZOZWCDS962r-Ex9jOhDZamEIq9amNcBG-Swm9zZK6IC4BoCou0QAvD_BwE

https://www.mercer.com/assets/global/en/shared-assets/global/attachments/pdf-2023-mercer-cfa-global-pension-index-full-report-11-09-2023.pdf

Superguide. 2020. “Superguide” November 24.
Key observations from the Retirement Income Review. Superguide. https://www.superguide.com.au/how-super-works/key-observations-retirement-income-review

To what extent does the current pension policy approach hinder or promote intergenerational equity?

10
 9

Pension policies are fully aligned with the goal of achieving intergenerational equity.
 8
 7
 6


Pension policies are largely aligned with the goal of achieving intergenerational equity.
 5
 4
 3


Pension policies are only somewhat aligned with the goal of achieving intergenerational equity.
 2
 1

Pension policies are not at all aligned with the goal of achieving intergenerational equity.
Policies Targeting Intergenerational Equity
8
Australia’s superannuation system focuses on future sustainability, with around 17 million Australians collectively owning about AUD 3.5 trillion in assets, expected to grow significantly over the next 40 years, providing capital to fund an aging population (Commonwealth of Australia 2023). The retirement income system could better support unpaid care work, which has an important intergenerational dimension, as carers make occupational sacrifices to raise future generations.

The public pension (Age Pension) is available to all people aged 67 and over, subject to income and assets tests, while the private pension system (superannuation) is accessible from age 60. This can incentivize early retirement, with individuals drawing down their superannuation before moving to the Age Pension at 67. For individuals with limited work capability, this may be desirable. However, for higher-income individuals, the superannuation system, being mostly “defined contribution,” incentivizes later retirement as superannuation balances and retirement living standards increase with later retirement. The average retirement age has been increasing over the last 20 years.

The superannuation system combined with the Age Pension generally provides adequate or better living standards in retirement for most retirees (The Treasury 2023). The economic well-being of retirees has improved substantially since the mid-1990s, reflecting increases in the generosity of the Age Pension and maturation of the superannuation system. However, retirees renting in the private market with limited work histories depend on the Age Pension and Commonwealth Rent Assistance, which do not provide adequate income.

Citations:
Commonwealth of Australia. 2023. Intergenerational Report 2023: Australia’s Future to 2063. The Treasury, Australian Government. https://treasury.gov.au/sites/default/files/2023-08/p2023-435150.pdf

The Treasury. 2020. “Retirement Income Review.” The Treasury, Australian Government. https://treasury.gov.au/publication/p2020-100554

Sustainable Inclusion of Migrants

#2

To what extent does the current policy approach hinder or facilitate the inclusion of migrants into society and the labor market?

10
 9

Integration policies are fully aligned with achieving the sustainable inclusion of migrants in society.
 8
 7
 6


Integration policies are largely aligned with achieving the sustainable inclusion of migrants in society.
 5
 4
 3


Integration policies are only somewhat aligned with achieving the sustainable inclusion of migrants in society.
 2
 1

Integration policies are not at all aligned with achieving the sustainable inclusion of migrants in society.
Integration Policy
8
Australia has a large migrant population, with nearly one in four residents born overseas and half having an overseas-born parent. The largest source of permanent migrants is the government’s skilled migration program, aiming to address workforce skills shortages and increase economically valuable skills. Approximately 60% of migrants to Australia since 2000 have arrived through the skilled migrants program, which tends to attract highly educated and economically valuable individuals with favorable labor market outcomes (AI Group 2023). About 81% of permanent skilled migrants over 15 are employed, compared with 62% of the rest of the Australian population, with a slightly higher unemployment rate of 3.8% compared to 3.3%, possibly due to issues with recognition of overseas qualifications.

Although migrants are not able to vote in Australian elections, there is a pathway to full citizenship open to them which would guarantee the right to vote alongside other political rights and responsibilities. Citizenship can be achieved within four years, subject to character standards, passing a citizenship test – which includes questions about Australian history and values – and other requirements. The government provides free English language learning support through its Adult Migrant English Programme (AMEP 2023) to improve integration.

The Migrant Integration Policy Index (MIPEX 2020) assesses countries on migrant integration policies across basic rights (e.g., migrants’ rights to work, training, health and non-discrimination), equal opportunities (e.g., in education, health and political participation), and future prospects (i.e., can migrants secure their future in the country through family reunification, permanent residence and citizenship).

Assessed against these criteria, Australia ranks in the highest-scoring group of countries that adopt a “comprehensive integration” approach, aiming to secure equal rights, opportunities and security for immigrants. Australia scores below some other major destination countries, including Canada, New Zealand and the United States, but above the Western European countries. The index identifies Australia’s weakest areas as migrant access to basic rights – where opportunities to participate politically are limited by the requirement that voters must be citizens – and labor market mobility, because migrants often face long delays before they can be employed under the same conditions as Australian citizens.

While there are good economic and integration opportunities for many groups of migrants, many migrants face significant hurdles to economic and political integration, particularly those arriving through refugee and humanitarian channels (Hirsch 2017).

Family reunion is an explicit component of the permanent migration program but is limited relative to demand, mostly restricted to partners of Australian permanent residents and citizens. Over 140,000 people seek parent visas, but only 8,500 places are available annually under the current migration program (Kaul 2023).

Citations:
AI Group. 2023. “Skilled Migrants’ Contribution to the Australian Workforce.” https://www.aigroup.com.au/resourcecentre/research-economics/economics-intelligence/2023/skilled-migrants-contribution-to-workforce/

MIPEX. 2020. “Migrant Integration Policy Index: Australia.” https://www.mipex.eu/australia

AMEP. 2023. “Adult Migrant English Program.” Australian Government Department of Home Affairs. https://immi.homeaffairs.gov.au/settling-in-australia/amep/about-the-program

Hirsch, A. 2017. “Denying Refugees Citizenship: The Australian Way.” https://www.refugeecouncil.org.au/denying-refugees-citizenship/

Kaul, N. 2023. “Over 140,000 Waiting for Parent Visas as Processing Time Balloons.” SBS February 17. https://www.sbs.com.au/language/hindi/en/podcast-episode/over-14-000-waiting-for-parent-visas-as-processing-period-balloons/8gkdg5lyp

Effective Capacity-Building for Global Poverty Reduction

#23

How committed is the government to helping build the capacity to reduce poverty and provide social protection in low- and middle-income countries?

10
 9

The government’s development cooperation strategy is fully aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
 8
 7
 6


The government’s development cooperation strategy is largely aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
 5
 4
 3


The government’s development cooperation strategy is only somewhat aligned with the goal of improving capacity-building in poverty reduction in low- and middle-income countries.
 2
 1

The government’s development cooperation strategy is not all aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
Management of Development Cooperation by Partner Country
6
The Australian government develops strategies and roadmaps for building capacity in recipient countries (DFAT 2023). Areas of focus include state fragility, gender equality, political rights, fiscal sustainability, health and climate change adaptation/mitigation. Geographically, these efforts have been concentrated on countries in the Pacific region and Asia. The direction of development policy has been criticized for giving too much weight to Australia’s geostrategic priorities and concerns.

A recent policy shift has placed greater emphasis on priorities central to development, but the lingering constraints of the old approach remain significant even in this new policy paradigm. The new policy has also been criticized for maintaining the overall size of the funding pot for development, even though there has been a downward trend in funding for development alongside a growing need for aid in recipient countries (Rajah 2023).

Critics of Australian development policies point out that while the rhetoric from ministers gives the impression of generosity, the country’s development assistance contributions are among the lowest of any OECD country (as a percentage of GDP). Grant Wyeth (2023) explains that a key reason for the relatively low level of development assistance is the difficulty of justifying a large aid budget to the Australian public. However, there are under-exploited opportunities in linking aid with regional security, as Australia is one of the few per-capita wealthy countries in its region, and increased assistance that facilitates a shift from medium- to high-income levels could enhance trust with Pacific and Asian countries.

Citations:
DFAT. 2023. “Australia’s International Development Performance and Delivery Framework.” https://www.dfat.gov.au/sites/default/files/performance-delivery-framework.pdf

Rajah, R. 2023. “The Constrained Ambition of Australia’s New Development Policy.” The Interpreter August 11. https://www.lowyinstitute.org/the-interpreter/constrained-ambition-australia-s-new-development-policy

Wyeth, G. 2023. “What difference can Australian development assistance make?” The Diplomat September 29. https://thediplomat.com/2023/09/what-difference-can-australian-development-assistance-make/
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