From Social Protection to Social Investment in Australia and New Zealand

Abstract Australia and New Zealand both have well-established and comprehensive welfare states. Prompted partly by the social and economic consequences of the Great Depression, large-scale and often complex administrative systems and structures were created to provide social protection efficiently and effectively. This chapter discusses the nature, origins, and evolution of these institutional arrangements, focusing on the state’s various roles as a funder, purchaser, provider, and regulator of social services. Among other things, we highlight the distinctive features of the welfare arrangements in each country, noting how the early preference for tax-funded social provision, rather than social insurance, influenced subsequent policy developments. We also discuss the overall performance of the welfare system, identify the main drivers for change, review recent reforms, including the emergence of the “social investment approach,” and anticipate future social policy directions.