Statistics released by the Australian Council of Social Services (ACOSS) and UNSW showed 3.24 million people, or 13.6 per cent of the population, are estimated to be living below the poverty line.

ACOSS chief executive Dr Cassandra Goldie said low welfare rates, the cost of housing and less jobs are locking Australians into poverty.

“People living in poverty include young people working to get their foot in the door of the competitive job market, single parents juggling caring responsibilities, and older people confronting age discrimination,” Dr Goldie said.

The report found the poverty line is $457 per week for a single adult, with poverty line being measured as 50 per cent of median income. 

The single rate of Youth Allowance (plus Rent Assistance and Energy Supplement) is $168 per week below the poverty line. 

ACOSS is calling for a $95 per week increase to Newstart and Youth Allowance; a $20 per week increase to Rent Assistance (as a first step) and for these payments to be regularly indexed to wages, as is the case for the age pension.

“The low rate of Newstart, a lack of jobs and unaffordable housing are locking people in poverty. Not only has poverty remained consistently high in our wealthy country, the depth of poverty is getting worse, with households in poverty on average living 42 per cent below the poverty line, up from 35 per cent in 2007,” Dr Goldie continued.

Comparison-wise, Australia is falling further behind other developed nations, ACOSS found. 

The report’s lead researcher, UNSW Sydney associate professor Dr Bruce Bradbury said, “The poverty rate in Australia is worse than in most other wealthy countries, including New Zealand, Germany and Ireland.”

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

Spending

FundTap's strategic partnership with GoCardless drives significant growth in Australia

In a move set to transform the landscape of invoice financing for small and medium businesses (SMBs) across Australia and New Zealand, FundTap has announced a strategic partnership with bank payment ...Read more

Spending

Fincap unveils new platform to revolutionise private market investing

In a significant development for wholesale investors and their advisers, FinCap has launched its managed account platform, opening the doors to institutional-grade private market accessRead more

Spending

Online retail is helping Australian households save as cost-of-living rises, new research shows

In a landscape marked by rising cost-of-living pressures, online retail is emerging as a beacon of savings for Australian households. According to new research by Mandala Partners, the competition ...Read more

Spending

Household Spending Pops, Rate Hike Looms: A CFO Playbook from an Australian Retail Case

Fresh ABS data shows household outlays running hotter than expected, particularly in services—stoking calls for an RBA move as early as February. For operators, the macro headline is simple; the ...Read more

Spending

State Street economist comments on softer-than-expected CPI data

In light of the latest Consumer Price Index (CPI) data release, Krishna Bhimavarapu, APAC Economist at State Street Investment Management, has provided insight into the implications for the Australian ...Read more

Spending

Moneysmart study reveals Gen Z women more concerned about finances than men

A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more

Spending

The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'

It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more

Spending

Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL

NAB has become the latest bank to enter the BNPL market.  Read more