A shocking amount of money the Australian government spends each year on welfare – and it’s more than education
- Welfare accounts for more than a third of total government expenditure
- Consistently outperforms other areas such as health and education
- Only to rise in coming years after ‘cost of living’ budget
The Australian government is putting more money into social security and welfare than any other area – and the numbers will skyrocket as a result of Labour’s recent ‘cost of living’ budget.
In the past five years, welfare has accounted for just over a third of all government spending, dwarfing spending on education, health care and defense.
And it is poised to rise under the current Labor government, which unveiled a $15 billion package of welfare increases in its budget earlier this month.
Figures show 40,000 Australians have been on JobSeeker for over 10 years, despite over 400,000 job openings nationwide
Welfare and social security spending consistently accounts for more than a third of total government spending (pictured)
Treasurer Jim Chalmers announced a massive shake-up across Australia’s welfare state, from Centrelink to Medicare to childcare and retirement savings.
Treasurer Jim Chalmers (pictured) revealed a huge welfare state shakeup in his ‘cost of living’ budget this month
Under a wave of measures designed to address the cost-of-living crisis, job seekers’ payments – known as the benefit – will rise by $40 every two weeks, while more than five million households can receive up to $500. claim as a discount on the cost of living.
Government spending on welfare, including jobseeker payments, child care subsidies, family tax breaks, pension spending, and national disability insurance, is consistently higher than spending in other areas.
Over the past five years, it has accounted for more than a third of all government spending, according to the most recent overview of government expenditure.
Estimates suggest that more than $205 billion will be spent on social security and welfare in 2023/24, a 20 percent increase from the same figure in 2018/19.
Welfare spending skyrocketed to an estimated $227 billion in 2020/21 with programs like the Pandemic Leave Disaster Payment.
Although it has since fallen, it continues to rise compared to pre-pandemic levels, according to government forecasts.
Government estimates (pictured) indicate that welfare spending will rise in the coming years. The figures above do not include student payments, elder care expenses, and the National Disability Insurance Act, so the actual estimates are likely to be much higher