Modern Australian
The Times

Australians support universal health care, so why not a universal basic income?

  • Written by Brian Howe, Professorial Associate in the Centre for Public Policy, University of Melbourne

In Australia, the idea of a universal basic income has floated in and out of our political arena for years, but remains only that, an idea.

The concept of a universal basic income has always been controversial. This notion - that the government should pay everyone a regular payment to meet their basic needs, despite their income - has been touted as a solution to inequality.

In the 1970s, the idea of a universal basic income looked as though it could become more.

Read more: Older people now less likely to fall into poverty

In 1972, the inaugural Director of the Melbourne Institute, Applied Economic and Social Research, professor Ronald Henderson, chaired the Australian government’s poverty inquiry. It was tasked by then Prime Minister Gough Whitlam, to investigate all aspects of poverty affecting Australians, including race, education, health and law.

Professor Henderson’s work led to what is now widely referred to as the Henderson Poverty Line, which measures the extent of poverty in Australia in terms of the income of families and individuals relative to their essential living costs; and he advocated a guaranteed minimum income scheme for Australia, similar to a universal basic income .

More than 40 years after professor Henderson began his report of the Commonwealth Commission of Inquiry into Poverty with the line:

“Poverty is not just a personal attribute: it arises out of the organisation of society.”

The suggestion of a guaranteed minimum income scheme

At the heart of the Henderson inquiry’s final recommendations was a guaranteed minimum income scheme, in which payments to pensioners (at a high rate) and payments to all other income units (at a lower rate) would be balanced by a proportional tax on all private income. The report states:

We believe that these reforms are the best way of reconciling the conflicting ends of policy on income support… They recognise that disabilities which hinder the earning of a private income warrant favoured treatment, but also provide support for people without disabilities in this sense, and who may still easily become poor – particularly the large family. Again, support is provided in a way which does not discredit those who claim it… so that income support may be seen as a right rather than a favour.

Professor Henderson was strongly in favour of universality in social policy - as exists in Medicare today in Australia. And that’s tangible in his idea of a universal minimum payment which would have ensured that incomes for individuals and families were in excess of the poverty line.

Australians support universal health care, so why not a universal basic income? Ronald Henderson, whose work led to the creation of a measure of poverty. Courtesy of the Henderson family., Author provided (No reuse)

Instead of means testing - which he opposed as it creates a separate system for the disadvantaged that can be stigmatising - he wanted to use the tax system to withdraw income from higher earners, rather than means testing pensions and benefits.

But this didn’t happen.

Instead, the Whitlam government was dismissed in 1975 – around six months after the inquiry delivered its final report, and the new government, headed up by Malcolm Fraser, hardly considered its recommendations.

Far from universality

At the time of professor Henderson’s pivotal work, post-war Australia had pursued the creation of an industrial economy where male workers played the dominant role. For the most part, employment then meant permanent full-time jobs in industry regulated and protected against foreign competition.

But, since that time, the country has pursued a very different course.

The key challenge is how Australia can maintain its commitment to fair and equitable wealth generation and distribution, in a modern world.

The precarious nature of modern labour markets puts enormous pressures on families and households, making it important to create a system that works in the interests of the truly disadvantaged.

Read more: Universal basic income: the dangerous idea of 2016

Professor Henderson distrusted a targeted social security system, and therefore recommended a basic income so that “income support may be seen as a right rather than a favour” for Australian citizens.

Since then, despite the example of universality in the key public institution of Medicare, to which all are entitled, the social security system has become more conditional, and arbitrary, with benefits now well below the poverty line.

There is growing evidence, for example, that social security payments for unemployed people, like Newstart, now barely meet the necessities of life – let alone cover expenses involved when people are looking for work.

In this country, we increasingly celebrate entrepreneurial self-reliance, but for disadvantaged people, the certainty of an adequate income is a fundamental foundation. It may not be sufficient, but it is necessary.

As professor Henderson said during a speech at a Remembrance Day rally in 1984 “we all have a right to a decent minimum income: to a fair share”.

Authors: Brian Howe, Professorial Associate in the Centre for Public Policy, University of Melbourne

Read more http://theconversation.com/australians-support-universal-health-care-so-why-not-a-universal-basic-income-91572

The Growing Popularity of Lab Grown Diamonds in Sydney and Hong Kong

The diamond industry has changed significantly in recent years as more buyers seek ethical, affordable, and sustainable alternatives to mined diamon...

Modern AI SEO Agency vs Traditional SEO: What’s the Difference

Search engine optimisation has changed dramatically over the past few years. Search engines have become smarter, user behaviour has evolved, and bus...

Caravan Travel for Modern Australian Getaways: Plan a Comfortable Holiday

A family road trip is one of the best ways to explore Australia together. And, travelling by caravan gives you the freedom to take your time, stop a...

Mini Excavator and Trailer Package for Sale: What I Buy as One Deal in 2026

The first client who asked me for a mini excavator and trailer package for sale wasn’t trying to save a few hundred dollars on shipping. They we...

Make Dad a Guest in His Own Home This Father’s Day

Father’s Day can accidentally turn Dad into the unpaid event manager of his own celebration. He lights the barbecue, finds extra chairs, checks wh...

Where to Enjoy Your Off-Road Caravan on the Gold Coast

With a caravan, you can travel anywhere and everywhere without battling the rush of the peak holiday season or last-minute reservations. While the r...

How Osteopathy Supports Recovery from Sciatica and Nerve Pain

Sciatica isn't just annoying. It's genuinely painful. It sits deep in your glute and shoots straight down the back of your leg. It turns something as...

The Winter Jewellery Edit: Five Pieces You'll Wear All Season

As wardrobes shift to cosy knits, tailored coats and rich seasonal textures, jewellery becomes the finishing touch that pulls every winter outfit to...

7 Signs It's Time to Upgrade Your Piston Air Compressor

If you run a workshop, panel shop, or fabrication business anywhere around Perth, you already know what heat and dust do to equipment over a few sum...

How Long Do Bathroom Renovations Melbourne Take? Step-by-Step Process Explained

Planning a bathroom renovation is exciting, but one of the biggest questions homeowners ask is, "How long will it take?" While every project is uniq...

Why Your Skin Breaks Out: The Science of Acne Explained

Acne is the most common skin condition in the world. An estimated 85% of people experience it at some point between the ages of 12 and 24, and a gro...

10 Swimwear Trends Australian Women Are Wearing This Summer

Every Australian summer brings a fresh wave of swimwear trends, but some styles have much greater staying power than others. While fashion constantly ...

Why Regular Skills Updates Are Essential for Licensed Security Officers

A guard at a Brisbane shopping centre gets a call about a shoplifter who's turned aggressive.  They’ve done the job for six years. But their de-...

10 Benefits of Choosing Professional Tutoring Penrith Services

Every student has unique learning strengths, challenges, and academic goals. While classroom teaching provides essential knowledge and structure, so...

Sunshine Coast Baby Classes Prove Big Hit Among First-Time Mums

There's a movement gaining traction on the Sunshine Coast, providing a village of support, socialisation and relief for first-time mothers and babie...

Father's Day Gift Ideas for Men Who Are Hard to Buy For

Some dads are easy to buy for. Others do not want anything, already have everything, or give you the classic "don't worry about me" answer every yea...

Top 5 Mistakes That Wear Out Your Brakes Faster

Brakes don't need frequent replacements like oil changes do.   But a lot of the wear happens quietly, over months, because of habits most drivers...

Plantation Shutters vs Curtains: Which Is Better for Your New Home?

Moving into a new home is an exciting opportunity to personalise your space and make it your own. While many homeowners focus on furniture, flooring...