As Australia heads towards the end of the first decade of the 21st century the struggle to introduce a universal Basic Income has reached a hiatus. Many of us are hopeful of moving forward but are uncertain as to when or how. A right-wing government was, after 12 years in office, replaced by a cautious centre-left government in late 2007. There have been some industrial gains made by the unions, social housing has been considerably expanded, increased funding has been provided to improve education and a more just approach taken towards asylum seekers and unemployed people. Reviews are currently underway into the structure of the health, tax and social security systems. The directions taken by the government, particularly in relation to taxation and social security, will determine how we proceed to promote Basic Income.
At the present time Australia has a reasonably comprehensive targeted, categorical and means tested social security system funded from general taxation. Age, widows and disability pensions are paid as are unemployment and sickness benefits. Carers and student allowances are also paid. Pensions are paid at 25% of the average wage but benefits and allowances are paid at lower rates.
The taxation system provides tax credits to those with children. Some self-employed trades-people privately insure themselves against injury. Since the early 1990s, there have been private superannuation funds into which employers are required to contribute 9% of each employee’s wage. Very generous tax deductibility applies to superannuation. This form of privatised superannuation means that the government disproportionately advantages the wealthy (See Hughes 2008, pp.104-147).
The Australian federal social security system commenced in 1910: it was gradually made more comprehensive. In 1975 The Henderson Poverty Inquiry recommended, at Chapter 6, of their first major report, the introduction of a two tiered guaranteed minimum income scheme. The left-wing government of the day seemed to be in favour of implementing it. Unfortunately this government was sacked by the Governor General before it could do so. The debate about introducing some form of universal income guarantee gradually lost momentum. No government since 1975 has looked likely to introduce any form of universal income guarantee.
Papers, journal articles, speeches, theses, books, newspaper stories and radio programs keep returning to the idea of introducing a Basic Income in Australia. So the debate here is very much alive. Much of the historical and present debate has been placed on the Basic Income Guarantee Australia web site: http://www.basicincome.qut.edu.au/index.jsp
This web site was set up by the Queensland University of Technology to help promote the introduction of more socially just forms of income support which will enhance the autonomy and income security of the poorest Australians.
John Tomlinson
