How a rising share of taxpayer-funded welfare is flowing to Australia's most well-off households

New research and economic modelling from Policy Institute Australia argues that modernising means testing could save the federal Budget around $21 billion a year while improving support for those who need it most. In its report, Home truths: The case for rebalancing toward better means testing, PIA finds Australia's safety net is growing faster than the economy, with a rising share of taxpayer support flowing to Australia's most well-off households. The report cites an example of a couple who own a five million dollar home who would qualify for the full pension, while the renters next door with one-point-five million in superannuation qualify for. PIA says it's one example of welfare for the well-off making the case for fairer means testing. PIA Chief executive Amy Auster says "Sensible changes to means testing can bolster our social safety net while freeing up budget capacity. This would give policymakers a greater range of choices in how we invest in Australia's future prosperity." PIA says its looking at four Commonwealth schemes: the Child Care Subsidy, Parental Leave Pay, the Age Pension and Aged Care. The major saving comes from a shift in treatment for owner-occupied housing. Under the report's preferred option, the pension and aged care asset test threshold for homeowners is raised, and any equity in the home above 500-thousand dollars is included. A single retiree in a home worth up to around one million dollars would still receive the full pension if that is where most of their wealth sits. Amy Auster says she hopes there will be political apetite for the suggested changes. #ABCBusiness Subscribe: http://ab.co/1svxLVE Note: In most cases, our captions are auto-generated. #ABCNEWS #ABCNEWSAustralia