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Between universalism and targeting: Exploring policy pathways for an Australian Basic Income

Author

Listed:
  • Ben Spies-Butcher

    (Macquarie University, Australia)

  • Ben Phillips

    (The Australian National University, Australia)

  • Troy Henderson

    (The University of Sydney, Australia)

Abstract

Despite growing interest in proposals for a universal basic income, little advance has been made in implementation. Here we explore policy options for an Australian Basic Income. Our analysis responds to concerns that Basic Income is both too expensive and too radical a departure from existing welfare state structures to be a feasible policy option. Drawing on policy and Basic Income scholarship we identify changes to Australia’s current means-tested benefits structures that move substantially towards Basic Income while remaining consistent with historic policy norms, which we call ‘affluence testing’. Using microsimulation we explore fiscal and distributional trade-offs associated with the implementation of an affluence-tested Basic Income. Our results suggest Basic Income has the potential to significantly reduce inequality and poverty while also requiring taxes to rise substantially. Placing these trade-offs in international context we find the policy would reduce inequality to levels similar to Nordic welfare states while increasing overall taxation to approximately the OECD average. JEL Codes: I3, H2, H5

Suggested Citation

  • Ben Spies-Butcher & Ben Phillips & Troy Henderson, 2020. "Between universalism and targeting: Exploring policy pathways for an Australian Basic Income," The Economic and Labour Relations Review, , vol. 31(4), pages 502-523, December.
    • Handle: RePEc:sae:ecolab:v:31:y:2020:i:4:p:502-523
    DOI: 10.1177/1035304620964272
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    References listed on IDEAS

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    Cited by:

    1. Frank Stilwell, 2021. "From green jobs to Green New Deal: What are the questions?," The Economic and Labour Relations Review, , vol. 32(2), pages 155-169, June.
    2. Suzuki, Tomoya, 2021. "Basic income, wealth inequality and welfare: A proposed case in New Zealand," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 118-128.

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    More about this item

    Keywords

    Basic income; fiscal policy; income distribution; social policy; taxation/taxation system/taxation policy; welfare state;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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