STINMOD+ is an advanced tax and welfare policy simulation model that can be used to evaluate the distributional and fiscal impact of tax and transfer policies. The model includes a policy database covering all major taxation and welfare schemes over the last two decades in Australia and can use ABS surveys or HILDA for national and state impact analysis, and NATSEM's spatial data for small area impact assessment. STINMOD+ was designed and developed by Dr Jinjing Li at NATSEM in 2016 and subsequently updated and improved by the STINMOD+ team.
STINMOD+ calculates the effects of tax and transfer policy on disposable incomes. It comprehensively models the tax and transfer system in Australia and includes all personal taxations and federally administered welfare payments other than the National Disability Insurance Scheme (NDIS). The model replicates the implementation of the programs in real life, incorporating elements such as income testing and asset testing.
STINMOD+ is also used as a platform for advanced economic modelling and can be linked with other economic and behavioural models. It can provide estimates of poverty and inequality, cost of the reforms and the distributional impact of changes to the tax and transfer policies.
In addition, the model can be used as a tool to understand the work incentives of household members and any implied intra-household redistribution.
The model is often used to analyse the impact of federal budget (See our Australian federal budget analysis) and can produce detailed policy impact analysis by household income quintile, region and family types. STINMOD+ can be potentially integrated with other software, including but not limited to a web interface, SAS, Stata, and R.