Reports

Australia’s Multi-Layered Social Security System –(Second Report) Analysis of the Second and Third Layers

https://doi.org/10.22034/report.2024.17157.1946
Abstract
The emergence of multiple challenges within Iran’s social security system has underscored the importance of examining its various dimensions alongside studying the experiences of other countries, with the aim of identifying strategies to overcome crises in this domain. In fact, analyzing the policies implemented by other nations in response to similar challenges—or exploring the structure of their social security systems to understand their impact on social welfare—can, when adapted to local conditions, offer a clear picture of the consequences of many social security policies. Studies show that among the 37 member countries of the Organisation for Economic Co-operation and Development (OECD), four countries Canada, Norway, Australia, and the Netherlands share notable similarities with Iran in terms of initial potential and have demonstrated strong performance in managing their social security systems.
This report, as a continuation of the previous analysis of Australia’s social security system, focuses on explaining the second and third layers of the system. It aims to provide a comprehensive understanding of Australia’s social security structure by detailing the components of the second layer and identifying the incentive-based retirement savings schemes that form the third layer.Australia’s extensive use of diverse tax instruments—not only in the third layer but even more broadly in the second layer—to encourage greater participation in retirement plans, along with adequate regulatory measures for managing the various second-layer funds by the Australian Taxation Office and the Australian Prudential Regulation Authority, and the system’s high level of transparency, are among the most important operational lessons that can be drawn from Australia’s social security model.
Subjects
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