Non-standard workers in a tax-financed social protection system: The Case of Australia

Changes in the nature of work pose challenges to the social security systems of high income countries, particularly those relying on contributory social insurance systems. These systems are based to varying degrees on workers satisfying contribution conditions that require or assume full-time engagement in paid work for the majority of years that individuals are in the labour force, together with formal arrangements for the payment and recording of contributions by employers and employees. They also often distinguish between employees and the self-employed. As temporary work and changing forms of employment contracts become more prevalent, the assumption of full-time, permanent formal employment threatens to become less accurate, potentially undermining welfare state finances as well as the social protection of workers and their families.

This chapter discusses the case of Australia, where most of the system of social protection is not based on contributory social insurance principles. This offers the opportunity to explore a case study where some of the apparent vulnerabilities of the social insurance state may not be so salient, but where other challenges and trade-offs may have arisen.