Ratio of welfare expenditure to tax revenue GDP
Ratio of welfare expenditure to tax revenue | Ratio of welfare expenditure to GDP | |
---|---|---|
2006–07 | 0.3 | 0.09 |
2007–08 | 0.29 | 0.08 |
2008–09 | 0.4 | 0.1 |
2009–10 | 0.35 | 0.09 |
2010–11 | 0.34 | 0.08 |
2011–12 | 0.35 | 0.09 |
2012–13 | 0.34 | 0.09 |
2013–14 | 0.34 | 0.09 |
2014–15 | 0.36 | 0.1 |
2015–16 | 0.35 | 0.1 |

Unlike most other countries in the OECD, the social security payment system is funded through government revenue; it is not based on past contributions and is not capped or time limited. In addition, Australia has Medicare, a publicly funded universal health system, which includes subsidised medication under the Pharmaceutical Benefits Scheme. The Government also provides significant investment in education, supporting government and non-government schools, as well as higher education and vocational education and training (Budget 2018-19, Statement 6: Expenses and Net Capital Investment).
Analysis by the Australian Institute of Health and Welfare (AIHW, 2015-16 data) shows expenditure by Australian and state and territory governments on welfare was $157.2 billion, up from $116.8 billion in 2006-07 constant prices. Overall, for the period from 2006-07 to 2015-16 welfare expenditure grew more quickly than the overall economy over the same period. This figure includes $105.1 billion in cash payments for specific populations (not including unemployment benefits), $42.2 billion in welfare services and $9.9 billion in unemployment benefits (AIHW, Australia’s Welfare 2017, p.27).