The Future of Social Security

The social security system is one of the largest and most significant areas of government spending in Australia and similar countries. Cash payments to individuals in 2022-23 were around $135 billion, or 20 per cent of the Commonwealth budget. Social security is also significant to individuals, with more than 5 million people receiving income support-either pensions or allowances—in 2022. The Australian system differs significantly from other countries’ systems, apart from New Zealand’s, in that payments are flat-rate and means-tested on current income and assets, and are financed from general taxation revenue rather than from social insurance contributions. As a