2018 Valuation Report
The 2018 Valuation Report provides insights into how the current Australian population is likely to use welfare in the future.
This signature piece involves advanced data analytics to improve the welfare system’s sustainability and effectiveness.
The Report reveals that Australia’s total lifetime cost is around $5.7 trillion as at 30 June 2018.
To compare changes in estimated future lifetime costs from the previous year, the Priority Investment Approach has reproduced the results of the 2017 Valuation Report using the current discount rate of 5 per cent. This change shows a 10.1 per cent overall reduction in the projected cost of welfare from 2017 to 2018.
For the first time, the Priority Investment Approach has analysed Australia’s future welfare cost in terms of locational disadvantage.
Findings from the 2018 Report show a clear link between location, income support recipients and the Australian Bureau of Statistics’ Socio-Economic Indexes for Areas (SEIFA):
- Australians in the most disadvantaged regions across the country are three times more likely to receive income support than those living in areas with the lowest level of socio-economic disadvantage
- Within cities, expected future welfare dependence tends to be higher in remote regions than in major cities.
With this analysis, we can explore the demographics of specific communities to gain deeper insights for developing more targeted supports.
The evidence provided in this report will inform government policies aimed at helping Australians to live independently of welfare and achieve more positive life outcomes.