• Last Updated: 11th Sep 2018

STINMOD+ Policy Coverage

STINMOD+ is designed to comprehensively cover the tax and transfer system in Australia, encompassing all major legislated policy measures. We broadly categorise the Australian transfer system into three components: family related benefits; pensions; and allowances, given their differences in targeting.

Family Benefits

Family benefits are the main benefits related to childcare support in Australia. STINMOD+ also estimates the benefits that are usually paid together with FTB, such as rent assistance. The model currently covers

  • Family Tax Benefit A and related benefits
  • Family Tax Benefit B and related benefits
  • Child Care Benefit and child care rebate
  • Childcare subsidy
  • Jobs, Education and Training Child Care Fee Assistance

Pensions

Pensions are benefits paid without the expectation that the beneficiary will return to the labour market. This is by far the largest component of the Australian welfare system. STINMOD+ simulates both the main benefits and the associated supplements, such as pension supplement, telephone allowance etc. The model currently covers

  • Age Pension
  • Disability Support Pension
  • Carer Allowance
  • Carer Payment
  • Carer Supplement
  • Parenting Payment (Single)
  • Widow B Pension
  • Veteran Pension

Allowances

Allowances are benefits designed to provide temporary economic relief. It is generally expected that the beneficiaries will return to the labour market. STINMOD+ simulates both the main benefits and the associated supplements. The model currently covers

  • Austudy
  • ABSTUDY (basic rates and supplementary measures simplified)
  • Bereavement Allowance
  • Dad and Partner Pay
  • Farm Household Allowance
  • Newstart Allowance
  • Parental Leave Pay
  • Parenting Payment (Partnered)
  • Partner Allowance
  • Remote Area Allowance
  • Sickness Allowance
  • Special Benefit
  • Widow Allowance
  • Youth Allowance

Tax and Superannuation

On the taxation side, the model currently covers

  • Education tax refund
  • Government co-contribution
  • Income tax
  • Low income super contribution
  • Low income supplement
  • Medicare levy and Medicare levy surcharge
  • Private health insurance rebate
  • Single income family supplement
  • Superannuation concessional contribution tax
  • Superannuation excess concessional contribution charge
  • Temporary levies such as flood levy and budget repair levy
  • Various offsets such as low income tax offset, beneficiary tax offset, seniors and pensioners tax offset
  • Very high income contribution tax (Division 293 tax)

The Australian transfer system is heavily means-tested and the amount a beneficiary may receive is dependent on income, wealth, and individual family circumstance. Correct implementation of the income and assets testing is crucial in the Australian context as more than 40% of the age pension payout, the largest part of the social security system in Australia, are reduced by means-testing, and among those partial pensioners, more than 44% were identified due to asset testing. STINMOD+ has significantly increased its means-testing coverage compared with the earlier STINMOD model.

It should be noted that the model covers 2001 onwards which means certain policies listed above may have been abolished or replaced. STINMOD+ maintains a longitudinal consistent parameter database for all policies in all available years.