minarchist wrote on Dec 19
th, 2019 at 11:41am:
Australia has a population of about 25 million. About 75% are aged over 18. If everyone received $500 per fortnight, this would cost $245 billion in the federal budget, compared to $192 billion in social security and welfare
About $45 billion is wasted in administration costs, so you'd save money in that respect if administration of the UBI was minimal or nonexistent. However, if the UBI is meant to be a full replacement of welfare, you can see where some people miss out:
- A pensioner would potentially miss out on Aged Care and other Assistance for the Aged
- A person receiving disability payments would potentially miss out on the NDIS and other Disability Services/Programs
- A person receiving the Carers Payment may be receiving less under a UBI, depending on the income they earn
- A family receiving Family Tax Benefits and/or Child Care Fee assistance may receive less than what both parents receive under a UBI
If you want to replace just the welfare payments with a UBI, you would then replace about $130 - $140 billion with $245 billion, thus having a budget shortfall of about $100 billion. The budget for 2019-2020 is estimated at $515 billion. Personally, I prefer a Negative Income Tax over a UBI as it offers an incentive to earn more.
So, based on your numbers, it's pretty much on par in terms of cost, with the UBI costing slightly more. However, much of this money would be spent back into the economy, so in this regard it would pay for itself in GDP terms.
They will lose out on other benefits, but the idea is based on the libertarian principle of personal responsibility without having people and children starve to death.
The main benefit of UBI is that it's unconditional - there's no need to apply to Centrelink and report your income, or be under the worry that you may lose your payment. It's guaranteed and it's unconditional.