Economic experts have predicted Australia’s welfare budget will explode by $37 billion (according to the forward estimates), unless changes are made immediately.

The budget-blowout will make more than half of all Australians reliant, in some manner, on welfare subsidies. And being a ‘handout’ nation will send the nation’s productivity spiralling out of control.

As it currently stand, a little over 12.7 million Australians are required to pay, on average, $11,500 in taxes each to fund the current welfare bill.

This will balloon from $149.1 billion to $186.8 billion in 2018/19.

The most urgent changes, say experts, need to be made to pensions. They advised an immediate discussion between all stakeholders to prioritise, narrow-down, and streamline the way welfare is currently provided.

Simon Cowan, a research fellow at the Centre for Independent Studies, said that the ‘current situation was no longer sustainable’. Aged pension should be given to those who needed it, rather than to everyone who qualifies for it under the current system.

Without some plan for reigning in the current welfare spending the bill will grow beyond the ability to fund it.

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