This paper aims to highlight the inadequacy of the Australian welfare system for some groups, in particular working age recipients, and analyses how certain taxation and superannuation reforms could fund significant improvements in the financial position of Australians most in need. The study reveals how changing tax concessions on the wealthiest superannuation accounts could fund a fairer safety net while boosting the super of 90% of Australians.

After housing costs and living standards are taken into account, almost three million Australians are living in poverty. The study finds those households with abnormally high rates of financial stress and poverty include single parents and their children, younger Australians, renters and working age welfare recipients. The study also finds that GST is highly regressive relative to disposable income. 

It proposes four budget-neutral policy options ranging from increasing working age payments through to a system-wide Guaranteed Minimum Income (GMI) set at the current poverty line. All four options are progressive and funded through reductions in superannuation tax concessions or changes in thresholds for some welfare payments and concessions to high-wealth/high-income households. The reforms would have greatest impact in regions with high welfare reliance and lower household wealth.