To reduce the deficit, try means testing

This includes programs that have traditionally resisted strict financial scrutiny, such as the National Disability Insurance Scheme. This was designed to transform the lives of Australians with significant and permanent disabilities. However, its loose management and skyrocketing costs have threatened its ongoing viability.

While disability affects individuals across all socio-economic spectrums, the capacity to fund personal care, home modifications and specialized therapies varies widely based on private wealth. A wealthy family with substantial assets is far better equipped to absorb the costs of private therapy than a low-income family struggling to pay rent.

By introducing comprehensive means testing to the scheme, the government can ensure the resources of the program are prioritised for participants who have no other financial recourse, keeping the scheme solvent and maintaining value for those who depend on it for survival. Well-designed taper rates can mitigate the risk of welfare traps, ensuring that individuals are always financially better off by working or investing.

More broadly, what’s needed is a change in culture. Ultimately, welfare is charity. Before governments got involved it was provided by churches, benevolent organisations and compassionate individuals. Public welfare is not an investment fund that yields a guaranteed dividend to every citizen regardless of their financial status; it is community-funded insurance against hardship and vulnerability.

Many Australians already know that. Governments just need to convince a few more.