This report provides estimates of welfare expenditure in Australia for the period 1998-99 to 2005-06. In 2005-06 this expenditure totalled $90 billion, $61 billion being for cash benefits and the remaining $29 billion for welfare services.'Welfare expenditure Australia' 2005-06 provides estimates of welfare expenditure in Australia for the period 1998-99 to 2005-06. Welfare expenditure comprises cash payments and expenditure for services specifically directed to families and children, older people, people with disabilities, and other groups such as widows, refugees and migrants. In 2005-06 this expenditure totalled $90 billion, $61 billion being for cash benefits and the remaining $29 billion for welfare services. Funding of welfare services by the eight state and territory governments are compared. This publication also contains estimates of social tax expenditures by the Australian Government and a special chapter on residential aged care expenditure. This report is an important reference for policy makers and those working in the community services sector.