This paper compares and contrasts the Australian and Scandinavian welf
are states with a view to demonstrating that, whilst the extent of wel
fare expenditures and the instruments of social policy vary quite mark
edly in these countries, policy outcomes in terms of levels of inequal
ity and poverty and social protection are much more similar. In the co
urse of this comparison, the paper casts serious doubts on the usefuln
ess of both the prevailing paradigms for evaluating welfare state perf
ormance: measures of expenditure effort and measures of welfare decomm
odification. Instead, it is argued that welfare state performance can
only be properly assessed, as Richard Titmuss pointed out many years a
go, by evaluating the impact of fiscal and occupational welfare in add
ition to the extent and character of the explicit expenditures of the
state. When we broaden our conception of social policy in this way, Au
stralia appears much less of a welfare state laggard than it is often
taken to be and the oft mooted Scandinavian claim to welfare superiori
ty is, perhaps, rather less compelling than is sometimes argued.