Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Earn

Is it time to bring in a UBI?

  • December 14 2020
  • Share

Earn

Is it time to bring in a UBI?

By Cameron Micallef
December 14 2020

The COVID-19 pandemic and subsequent government support has seen a growing number of Australians favour a universal basic income, new research has found.

universal basic income

Is it time to bring in a UBI?

author image
  • December 14 2020
  • Share

The COVID-19 pandemic and subsequent government support has seen a growing number of Australians favour a universal basic income, new research has found.

universal basic income

A universal basic income (UBI) is a payment made to all adult individuals that allows people to meet their basic needs. It is made without any work or activity tests.

With an increasing number of Australians relying on some sort of government support during the COVID-19 pandemic, support has grown to implement a UBI. 

Research collated by the Green Institute showed that 58 per cent of Australians now believe a UBI should be implemented. 

A YouGov poll of 1,026 Australians commissioned by the Green Institute, an Australian Greens think tank, found that 29 per cent of Aussies “strongly support” the idea of UBI, with 29 per cent “somewhat support” implementing government benefits. 

Advertisement
Advertisement

Green Institute executive director Tim Hollo said a UBI would be a better system than the current racist plan implemented by the Australian government.

“The response that came back was a real surprise. Twenty-nine per cent strongly support, a further 29 per cent somewhat support, and only 18 per cent oppose.”

“This poll should well and truly squash that assumption and open up space in Australian politics for a different path – a path that sees us looking out for each other, helping each other to find our feet, making sure nobody slips through the cracks,” he said.

What would it cost to implement a UBI?

A previous study by Macquarie University’s Ben Spies-Butcher, Australian National University’s Ben Phillips and University of Sydney’s Troy Henderson said Australia could lift hundreds of thousands above the poverty line with a basic income of $18,500 a year.

Rather than being paid to all adults, the Australian basic income would taper off as an individual’s income rises.

For Australians who have reached the top tax margin, or make $180,000 a year, they would not receive any government benefits.

The payment system would index down based on salary, with the lowest-paid workers receiving the full $18,500 a year.

However, implementing the proposal would not come cheap. 

Australia would need to raise its tax rate from 28 per cent of GDP to 34 per cent in order to fund the UBI. 

In total, the researchers found that the scheme would cost between $103 billion to $126 billion a year.

However, the team of economists pointed out that this would allow the government to step away from other benefits schemes, including JobSeeker and Youth Allowance expenses.

Is it time to bring in a UBI?
universal basic income
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.