The OECD has concluded that "the level of generosity of unemployment benefits in Australia remains below the OECD average, particularly with regard to shorter duration unemployment."
Regarding the impact of social security benefits on employment and the economy as a whole, the OECD comments : "Comprehensive means-testing of social security benefits in Australia has constrained expenditure on them to levels far below those in most other countries. This has enabled Australia to combine a comprehensive social safety net with low tax wedges on labour income and hence, an ‘employment-friendly’ taxation environment."
Australian liberalism is a broad church. Within that church are two fundamental arches. Under one arch rests the market, free enterprise, opportunity and incentive. Under the other rests stability, security, social justice and equity. The mortar that binds those two arches is the State.
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Menzies saw a free market society enriched by a commitment to its imperative obligations to the weak, the sick, and the unfortunate. To ensure that to every good citizen the state owes not only a chance in life, but also a self-respecting life. Not as charity. But as a fundamental right.
They are the foundations upon which the modern Liberal Party was built. They are the foundations that will endure.
This is an edited extract from the 1999 Menzies Lecture.
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