This paper Compares and Contrasts the Australian and Scandinavian welfare states with a view to demonstrating that, whilst the extent of welfare expenditures and the instruments of social policy vary quite markedly in these countria, policy outcomes in terms of levels of inequality and poverty and social protection are much more similar. In the course of this comparison. the paper casts serious doubts on the usefulness of both the prevailing paradigms for evaluating welfare state performance: measures of expenditure effort and measures of welfare decommodification. Instead. it is argued that welfare state performance can only be properly assessed, as Richard Titmuss pointed out many years ago, by evaluating the impact of fiscal and occupational welfare in addition to the extent and character of the explicit expenditures of the state. When we broaden our conception of social policy in this way. Australia appears much less of a welfare state laggard than it is often taken to be and the oft mooted Scandinavian claim to welfare superiority is. perhaps. rather less compelling than is sometimes argued.