Which welfare spending is “unsustainable”?

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By Leith van Onselen

Social Services Minister, Christian Porter, has released data portending to show that the Disability Support Pension (DSP) has hit “unsustainable” levels at $17 billion a year. From The Australian:

Worried that past reforms will not do enough to fix the problem, the government is warning that payments to more than 800,000 disability support pensioners have grown by 7.6 per cent on average every year for the past decade, far ahead of inflation.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.