Australia’s social security system comprises means tested payments aimed at different recipient categories. There are various income support payments for working-age people requiring assistance due to disability, unemployment, caring responsibilities or while studying. 

The proportion of Australia’s population aged 15 to 64 receiving income support payments reached record lows in 2023 and 2024. This was driven by a strong labour market and pre-COVID-19 policy changes. This paper outlines the Australian context for working-age welfare recipients, analyses the impact of pre-COVID and COVID-19 policies, and examines trends in students and people with disability receiving income support.

The record numbers of working-age people in paid employment is a significant achievement. However, the low numbers of working-age people receiving welfare payments tells little about how the income support system performs. There are significant demographic shifts happening within payment categories and missing from the picture are the stories of those unable to find work but ineligible for income support.

Key points

• In June 2023, close to 12% of the population aged 15 to 64 received income support payments – the lowest level in more than 45 years.
• The long-term decline in working-age welfare receipt is partly due to previous governments’ policy changes restricting eligibility for some payments, phasing-out other payments and tight targeting through means testing.
• There has been a marked decline in student payment recipients.
• There has also been a significant decrease in Disability Support Pension recipients.