Is Australia one recession away from a disability blowout? Lessons from other organisation for economic co-operation and development countries

Abstract

A blowout in disability-based cash transfer programmes resulted in fundamental reforms over the last decade in several Organisation for Economic Co-operation and Development countries. Similar reforms are being proposed in the United States in the wake of its disability programme growth following the Global Financial Crisis. We compare trends in US and Australian disability receipt with those of the Netherlands and Sweden and argue that Australia's current Disability Support Pension programme is vulnerable to the same forces that caused unsustainable programme growth in these countries. Absent fundamental reforms focused on return to work over benefit receipt means that Australia could be one recession away from disability benefit blowout. © 2013 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.