- This paper seeks to examine the extent to which transfer payments contribute to local economies in Australia.
- Across Australia it is estimated that 15.8% of net personal income (after income tax) is derived from transfer payments from the Department of Social Security.
- When account is taken of payments also made by the Department of Veterans Affairs and the Department of Employment, Education, Training and Youth Affairs and Community Development Employment Program funds provided through the Aboriginal and Torres Strait Islander Commission, this proportion increases to 18.7%.
- These outcomes are not evenly distributed across the nation. While 25% of the population live in locations where DSS payments represent less than 11.6% of personal disposable income, a further 25% live in locations where it accounts for more than 21.1%.