Australia’s approach to social investment

About the approach

The Priority Investment Approach provides a better understanding of how Australians use the social security system, and where we can intervene early to support vulnerable Australians.

The Priority Investment Approach uses a model to inform decisions that improve long-term outcomes for all Australians. The actuarial analysis provides a long-term view of how Australians are expected to use social security over their lifetime.

Benefits of the approach

The Priority Investment Approach can:

predict future social security usage and associated lifetime cost
identify and provide insights into vulnerable groups
inform early intervention.

By using the Priority Investment Approach and intervening early, we can give people with capacity the support they need to take part economically and socially through work.

The Priority Investment Approach model is supported by a longitudinal dataset of people who receive social security payments. It is an actuarial model that predicts social security usage based on historical patterns.

Future social security costs for the entire Australian population are estimated through a valuation. This process identifies groups that are most at risk of disadvantage and where to focus investment and support. The approach helps make policies based on evidence.

Reports and analysis

The 2022 Priority Investment Approach findings can be found in the following products. The valuation report provides insight into how Australians are likely to use the social security system in the future.

Australian Priority Investment Approach to Welfare - 30 June 2022 Valuation Report

This report presents a summary of findings from the 30 June 2022 actuarial valuation of the Australian social security system. It provides insight into how Australians are likely to access social security over their lifetime.

Access this resource

Factsheets

This series provides insights into demographic and other factors driving future payment usage.

JobSeeker Payment: 2022 Priority Investment Approach fact sheet

Parenting Payment Single: 2022 Priority Investment Approach Factsheet

Youth Allowance (Student): 2022 Priority Investment Approach fact sheet

Disability Support Pension: 2022 Priority Investment Approach fact sheet

Carer Payment: 2022 Priority Investment Approach Factsheet