‘Alarming’: Number of Australians on Welfare Jumps to 2.1 Million

Shocking Increase: 2.1 Million Australians Now Receiving Welfare

April 7, 2024 TruthUSA

NDIS recipients account for a significant 86 percent of the increase in the total number of welfare recipients since 2018.

Australia is increasingly reliant on welfare payments, with over 2.1 million recipients, representing nearly 8 percent of the population, as per new research by a think tank.

This surge includes 425,000 more welfare recipients compared to before the COVID-19 pandemic, primarily driven by the National Disability Insurance Scheme (NDIS).

This trend has raised concerns about Australia’s expanding welfare culture amidst economic challenges, strained finances, and rising debt levels.

According to the Institute of Public Affairs (IPA), around 2.1 million Australians aged over 15 are receiving welfare through programs like NDIS, Disability Support Pension (DSP), Jobseeker, or Youth Allowance.

NDIS recipients contribute significantly to the total growth since 2018.

The NDIS was established by the Gillard Labor government in 2013 and fully implemented by 2020.

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From 2013 to 2018, prior to the pandemic and the introduction of NDIS, the number of welfare recipients had decreased by approximately 115,000, averaging 23,000 per year.

IPA’s estimation suggests that if this trend had continued until 2023, the number of welfare recipients would be 1.5 million instead of 2.1 million, showcasing a difference of 600,000.

These findings align with those of Jarden, indicating that the NDIS has become the primary driver of employment in the Australian economy, contributing to around one in three jobs.

Daniel Wild, deputy executive director of IPA, highlighted the rapid increase in welfare dependency as concerning, emphasizing the importance of addressing the growing culture of welfare in Australia, given the strained financial situation and mounting debt levels.

He emphasized that while many Australians legitimately receive welfare, there is a growing segment who could work but choose not to, placing a significant burden on the nation’s finances and debt levels.

Wild emphasized that the response to COVID-19 by federal and state governments has normalized a welfare culture detaching income from work, particularly affecting young Australians.

Australia’s debt has surged to record levels amidst the pandemic, escalating from $534 billion in March 2019 to $894 billion in October 2022, as per government data.

During the pandemic, Sydney’s lockdowns were estimated to cost over $1 billion weekly, while Victoria’s lockdowns incurred costs of at least $5 billion.

The Labor government under Albanese has aimed to control the costs associated with the NDIS program, projected to reach $125 billion annually by 2034 according to some estimates.

In April 2023, the National Cabinet committed to reducing the annual growth of NDIS to 8 percent by July 1, 2026, from the current 14 percent.

NDIS Minister Bill Shorten emphasized the need to enhance the functioning of the Scheme for participants, families, and the disability sector.

Despite efforts to curb costs, Labor Treasurer Jim Chalmers assured that NDIS eligibility criteria would not be tightened, reaffirming the government’s commitment to the disability scheme’s future.

Following a recent program review, the government has introduced legislation for an NDIS overhaul, raising concerns among states and territories about the potential impact on their budgets.

Alfred But contributed to this report.

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