8.1 Indicators of Australia’s welfare
Introduction
In this chapter we aim to summarise the performance of the welfare system by presenting a
provisional set of measures of performance in the form of statistical indicators (see Box 8.1.1).
A challenge at the outset of this exercise is defining what the welfare system is. Many of the issues
associated with settling on a definition are discussed in Chapter 1, and are not repeated here. Rather,
we simply present here for convenience the essence of the welfare system as summarised in that
chapter, namely:
‘the set of supports, services and payments that Australian society—in part through their
elected governments—has chosen as acceptable investments to improve the wellbeing
of Australians in need, largely by enhancing capabilities and opportunities for people to
participate economically and socially’.
Currently, Australia does not have a nationally agreed set of indicators for reporting on the overall
performance of the welfare system. This chapter attempts to meet this need by proposing a
reporting framework and indicator set that could provide the basis for an enduring framework for
future reporting.
Presenting a chapter of indicators is not new for an Australia’s welfare report, having been introduced
in 2001 (AIHW 2001) and reported in most editions since. What is new in this edition is that we
have taken a fresh look at what measures best capture the depth and breadth of Australia’s welfare
system. We have looked at the aspects of wellbeing that inform how life is going for those who need
and/or receive welfare services, and for all Australians more generally. We aim to build on earlier
indicator sets where much less attention was paid to the activities and outcomes of the welfare
services ‘system’, and how the system contributes to overall population wellbeing—along with
informal supports, other non-welfare service sectors, and broad sociodemographic influences.
In the context of developing a set of performance measures, it is worthwhile underscoring that
the welfare system comprises multiple service providers across government, not-for-profit and
for-profit sectors, and that programs involving non-government providers are invariably purchased
or underwritten by governments through program grants, subsidies, or other forms of funding.
So, although the scope of this exercise covers the performance of all providers in the system,
given the dominance of government, and the particular interest of governments in performance
reporting, the indicators and data largely reflect the role of governments in the welfare system.
Another emphasis we have applied in developing this framework is on the role of the welfare sector
in providing support services to people in need, rather than its role in redistributing income (see
Chapter 1 ‘Welfare in Australia’ for further discussion of the roles of the welfare system)