Validation of the Australian Priority Investment Approach to Welfare
ISSR and Deloitte Actuaries & Consultants Limited came together in an exciting partnership to validate the actuarial valuation for the Australian Priority Investment Approach to Welfare for the Commonwealth Government.
The Priority Investment Approach is a brave new initiative in Australia’s social policy environment and we were keen to ensure the Department has the tools and trust to apply it with confidence.
The Priority Investment Approach uses actuarial valuations to estimate the total lifetime cost of Australia’s social security system, including identifying population groups at risk of long-term welfare dependency. We applied statistical and actuarial analyses to critically assess the baseline valuation and the first annual re-valuation for the Priority Investment Approach, including assessing the reasonableness of assumptions and parameters used throughout the model, and assessing how well the actuarial analysis was able to predict the lifetime costs of groups and sub-groups that have high life-time costs. We also reviewed the completeness of the underlying dataset, using SAS, and determined the adequacy and accuracy of technical documentation relating to the actuarial analyses for the Priority Investment Approach to welfare.
Aims
- Validate the first two actuarial valuations of the Australian Priority Investment Approach to Welfare
Project team
- Professor Michele Haynes - Project leader
- Rick Shaw (Deloitte Australia)
- Dr Melanie Spallek
- Lucy Simpson (Deloitte Australia)
- Dr Bernard Baffour
Project details
Duration: June 2016 - August 2017
Partners: Australian Department of Social Services
Funding: Australian Department of Social Services
Contact: ISSR Research (issr.research@uq.edu.au)
ISSR ref: ISSR161426