Tanya Plibersek has an uphill battle to justify and prioritise Australia’s multibillion-dollar social services system, her department has warned, against a backdrop of “rising geopolitical tensions and political polarisation”.
The Department of Social Services, which is responsible for a quarter of federal government spending, delivered the warning to the new social services minister about the flow-on effects of global uncertainty in a brief dated 13 May and obtained by Guardian Australia under freedom of information laws.
Uncertainty, prompted by current conflicts, their aftermath and escalations in trade hostilities could worsen income inequality and weaken resilience, the department warned in its incoming government briefing, sent after the May federal election.
“The frequency and intensity of economic and environmental shocks are pushing more people into more vulnerable situations, increasing the risk of entrenched disadvantage,” the brief said.
“This can compound with regional vulnerabilities due to extreme weather events, industry shutdown and existing economic inequality.”
There were also concerns that intergenerational inequalities were growing, with the department warning more young Australians are relying “on family for financial support and/or housing well into adulthood” and delaying milestones including education, employment, family and home ownership.
While the brief noted there had been advances in women’s and First Nations people’s workforce participation and the gender pay gap, the department said including people with disability, social attitudes towards LGBTQ+ people, and valuing multiculturalism and the contribution of migrants were central policy concerns.
The department acknowledged a stronger focus on security and managing economic risk could place pressures on the minister to “justify and prioritise payments, programs and services”.
“This will require increased focus on policies that demonstrate value for money and lead to improvements in employment, social inclusion and overall wellbeing,” the advice said.
“Achieving this will require reforms to be disciplined and have a robust evidence base, taking advantage of opportunities to improve productivity and impact. It will also require unlocking existing opportunities in sectors experiencing employment growth such as the care and support economy.”
A government spokesperson said it is “absolutely devoted to delivering on our election commitments”, including expanding paid parental leave to six months and cracking down on financial abuse in domestic violence.
”The government appreciates candour and frank and fearless advice from its departments and agencies,” the spokesperson said.
The department is responsible for approximately $198bn, or 25%, of all commonwealth expenditure in 2025-26, which will increase to $206bn over the next four years.
The majority of its spending, about $153bn, is on personal benefits.
In a more detailed breakdown of the challenges Australia is facing, the department noted social cohesion was declining “rapidly” after peaking during the Covid-19 pandemic, referencing studies by the Scanlon Institute.
Loneliness in certain cohorts, such as young men aged between 15 and 24, could see them targeted by extremist groups, which can be linked to misogyny and violence against women, the briefing noted.
Community concern about the inadequacy of income support payments was also addressed, with the brief acknowledging that increases to rent support payments since 2023 have failed to address housing stress for many recipients.
The department stated that low- and middle-income taxpayers are “subsidising the retirement incomes of seniors with significant wealth in addition to their homes” under social security reform.
The age pension is provided to couples with incomes of almost $100,000 a year or assets of almost $1.05m, in addition to their principal home, which can be of unlimited value, the department noted.
“Age pensioners generally maintain or grow their assets in the last five years prior to their death. By contrast, a single job seeker without children who has more than $11,500 in liquid assets must wait 13 weeks before any income support becomes payable,” the department said.
