Damon Mcknight
Despite being a signatory to the United Nations' Sustainable Development Goals, which include the goal of No poverty, Australia has the 15th highest poverty rate out of the 34 wealthiest countries in the OECD. This amounts to 3.3 million Australians living below the poverty line, including 761,000 children. While the Australian government has been called upon to address this issue, its current policies on JobSeeker payments and Parenting Payment Single are contributing to the problem, locking millions in poverty. However, during the pandemic, the government's additional Coronavirus Supplement successfully lifted millions out of poverty and halved child poverty. This article will explore the Australian government's actions and inactions regarding poverty, as well as potential solutions to reduce it.
| Characteristics | Values |
|---|---|
| Number of people living below the poverty line | 3.3 million |
| Number of children living below the poverty line | 750,000-761,000 |
| Poverty rate among sole parent families | 35% |
| Poverty rate among children in sole parent families | 44% |
| Poverty rate among children in couple families | 13% |
| Poverty rate among renters aged 65 and over | 41% |
| Poverty rate among all people aged 65 and over | 10% |
| Australia's rank in poverty rate among OECD countries | 15th highest out of 36 countries |
| Australia's poverty rate according to OECD | 12.6% |
| Australia's poverty rate according to ACOSS and UNSW | 13.4% |
| ACOSS and UNSW poverty line | 50% of median income |
| ACOSS and UNSW second poverty line | 60% of median income |
| Shortage of social housing for people in the lowest 20% of household incomes | 433,000 homes |
| Number of additional social and affordable housing properties advocated by the Everybody's Home Campaign | 25,000 per year |
| Proposed daily rate for JobSeeker | $78 |
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What You'll Learn
Increase JobSeeker payments
Australia has the 15th highest poverty rate out of the 34 wealthiest countries in the OECD, with 3.3 million people living below the poverty line. This includes 761,000 children, or one in six young people, who were living in poverty in 2019-2020. People living in poverty in Australia often have to make difficult choices, such as skipping meals to pay for a child's textbooks or school excursions.
One way to address this issue is to increase JobSeeker payments. The current rate of JobSeeker payments is not enough to lift people out of poverty and help them meet their basic needs, including rent, food, medication, and education. During the pandemic, the Australian government introduced the Coronavirus Supplement, which temporarily increased unemployment payments. This additional support lifted millions of people out of poverty and halved child poverty.
To make a lasting impact, Australia should consider permanently raising the rate of JobSeeker payments to at least $78 per day. This increase would ensure that everyone can afford the basics and improve their overall quality of life. It would also reduce the psychological distress associated with financial insecurity and the stigma surrounding income support.
By increasing JobSeeker payments, the Australian government can take a significant step towards reducing poverty and ensuring that all Australians have the resources they need to thrive. This measure aligns with the United Nations' Sustainable Development Goals, of which Australia is a signatory, which include the goal of "No poverty."
Additionally, it is important to address the underlying causes of poverty and homelessness, as well as systemic disadvantages faced by certain groups, such as First Nations communities and single-parent families. This may include providing a Voice to Parliament for First Nations people and ensuring a fair social security system that guarantees an adequate income for all.
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Build social housing
Australia has the 15th highest poverty rate out of the 34 wealthiest countries in the OECD, with 3.3 million people living below the poverty line. This includes 761,000 children, or one in six young people, according to 2019-2020 estimates. People living in poverty in Australia often miss out on essentials such as food or a roof over their heads.
One of the solutions to alleviate poverty and fix the housing crisis is to build social housing. Currently, there is a national shortage of 433,000 homes for people in the lowest 20% of household incomes. The Everybody's Home Campaign calls for the Australian Government to build at least 25,000 additional social and affordable housing properties per year.
The main factor determining the poverty status of older people is their housing status. 41% of renters aged 65 and over are in poverty, compared to just 10% of all people aged 65 and over. Among different family types, sole parent families have the highest poverty rates at 35%. Children in these families are more than three times as likely to live in poverty as children in couple families, with a poverty rate of 44% compared to 13%.
The Australian Government can address this issue by investing in the construction of social housing units, prioritizing those most in need, such as the elderly, single-parent families, and low-income households. This can be done through various initiatives, such as:
- Partnering with non-profit organizations and community groups to identify and support the construction of social housing projects.
- Providing grants or low-interest loans to developers who commit to building a certain percentage of social housing units in their developments.
- Utilizing government-owned land to develop social housing projects, ensuring that these properties are well-integrated into the surrounding communities and have access to necessary infrastructure and amenities.
- Offering tax incentives or subsidies to encourage private developers to include social housing units in their projects.
- Working with local governments and urban planners to identify areas where social housing is most needed and developing strategies to ensure these areas have access to necessary services and infrastructure.
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Reform mutual obligations
Australia has the 15th highest poverty rate out of the 34 wealthiest countries in the OECD, with 3.3 million people living below the poverty line. This includes 761,000 children, or one in six young people, who were living in poverty in 2019-20. People living in poverty in Australia often miss out on essentials such as food or a roof over their heads.
One of the key recommendations to reduce poverty in Australia is to reform mutual obligations. The current system for accessing income support payments is compliance-driven, punitive, and stigmatising, causing psychological distress and hindering economic participation. The following paragraphs will discuss specific actions that can be taken to reform mutual obligations and reduce the burden of poverty in Australia.
Firstly, it is essential to increase the adequacy of JobSeeker and family payments. This will ensure that everyone can afford basic necessities, including rent, food, medication, and education. The additional Coronavirus Supplement during the pandemic demonstrated the positive impact of higher unemployment payments, lifting millions out of poverty and halving child poverty.
Secondly, the government should address the shortage of social housing. There is currently a national shortage of 433,000 homes for people in the lowest 20% of household incomes. The government should commit to building additional social and affordable housing properties each year to address this shortage. This can be done through initiatives such as the Everybody's Home Campaign, which calls for at least 25,000 new social and affordable housing properties annually.
Thirdly, the income support system needs to be improved to prevent people from falling into poverty. This includes raising the rate of JobSeeker to a minimum of $78 per day and providing income support payments in advance of each Federal Budget. The Economic Inclusion Advisory Committee can play a crucial role in providing advice and ensuring that these payments are included in the Federal Budget.
Finally, it is essential to recognise the unique challenges faced by First Nations communities in Australia. By seeking a Voice to Parliament enshrined in the Constitution, the Australian government can work together with these communities to address the underlying causes of poverty and self-determination. This includes addressing the high poverty rates among sole parent families, especially in Indigenous communities, and ensuring that all children have equal opportunities regardless of their family structure.
By implementing these reforms to mutual obligations, the Australian government can make significant progress in reducing poverty and improving the lives of those struggling to make ends meet.
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Implement a Child Poverty Reduction Act
Australia has the 15th highest poverty rate out of the 34 wealthiest countries in the OECD, with 3.3 million people living below the poverty line. This includes 761,000 children, or one in six young people, who are forced to miss out on essentials such as food and school excursions. Sole parent families have the highest poverty rates at 35%, with children in these families more than three times as likely to live in poverty compared to children in couple families.
To address this issue, there have been calls for the Australian government to implement a Child Poverty Reduction Act, following the example set by New Zealand. This legislation would establish a clear accountability framework and ensure that reducing child poverty remains a priority across all political parties.
- Increase the adequacy of JobSeeker and family payments: The current rates of JobSeeker and other government payments are often insufficient, trapping many Australians in poverty. Increasing these payments would ensure that everyone can afford basic necessities such as rent, food, medication, and education.
- Build more social housing: There is a national shortage of 433,000 homes for people in the lowest 20% of household incomes. The Australian government should commit to building additional social and affordable housing properties each year to address this shortage.
- Reform the income support system: The current system, with its punitive mutual obligations, causes psychological distress and hinders economic participation. Reforming this system to make it more supportive and accessible can help prevent people from falling into poverty.
- Address homelessness and systemic disadvantage: Work to address the underlying causes of homelessness and systemic disadvantage, especially for First Nations communities. This includes providing a Voice to Parliament for Indigenous Australians, enshrined in the Constitution, to ensure their self-determination and tackle the poverty rates within these communities.
- Achieve income growth for the lowest 40% of the population: Implement policies that progressively achieve and sustain income growth for the lowest 40% of earners at a rate higher than the national average. This can help reduce income inequality and lift people out of poverty.
- Ensure a fair social security system: Develop policies that guarantee an adequate income for all, covering the cost of living and allowing people to live with dignity, free from poverty.
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Include First Nations voices in Parliament
The Australian government has been criticised for its handling of the poverty crisis in the country, with over 3 million Australians living below the poverty line. Anti-Poverty Week has called for the inclusion of First Nations voices in Parliament, a long-overdue move that is essential to tackling the poverty and disadvantage faced by these communities.
The Aboriginal and Torres Strait Islander Voice, also known as the Indigenous Voice to Parliament or the Voice, was a proposed federal advisory body intended to represent the views of Indigenous communities. The proposal, put forward by the Albanese government, would have allowed the Voice to make representations to the Parliament of Australia and the executive government on matters concerning Indigenous Australians. The specific form of the Voice was to be determined by legislation passed by Parliament, had the referendum succeeded.
The history of this proposal can be traced back to the Referendum Council, which in October 2016, released a Discussion Paper on the Constitutional Recognition of Aboriginal and Torres Strait Islander Peoples. This was followed by consultations with Indigenous Australians, leading to the First Nations National Constitutional Convention in May 2017. The Uluru Statement from the Heart, presented at this convention, included a request for the establishment of a First Nations Voice enshrined in the Constitution.
The Referendum Council's final report, released in June 2017, recommended holding a referendum for a constitutional voice. However, the Turnbull government rejected the proposal, arguing that it would be seen as a third chamber of parliament. Instead, they established the Joint Select Committee on Constitutional Recognition relating to Aboriginal and Torres Strait Islander Peoples in March 2018.
Despite the unsuccessful referendum in October 2023, there is still a path forward for the Voice. The First Nations Referendum Working Group (RWG) has outlined design principles endorsed by the government, which include the Voice's membership being selected by Aboriginal and Torres Strait Islander communities with an enforced gender balance. While the current government has stated its opposition to legislating the Voice, it remains legally possible for it to be introduced through legislation rather than a constitutional amendment.
The inclusion of First Nations voices in Parliament is a crucial step towards addressing the poverty and disadvantage experienced by these communities. It is essential to recognise Indigenous Australians as the first peoples of the nation and to provide them with a platform to influence decision-making, policies, and laws that directly impact their lives.
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Frequently asked questions
The Australian government has been criticised for not doing enough to address poverty. Australia does not have an official poverty line, which makes it difficult to measure the number of people struggling to make ends meet. However, according to the Australia Institute, 83% of Australians support the idea of the government measuring and reporting on poverty. There are calls for the government to introduce a Child Poverty Reduction Act, similar to the one in New Zealand.
Australia has the 15th highest poverty rate out of the 34 wealthiest countries in the OECD. This is higher than the OECD average, and higher than the UK, Germany and New Zealand. In 2022, it was estimated that 3.3 million people (13.4%) were living below the poverty line, including 761,000 children (16.6%).
People living in poverty in Australia often struggle to afford essentials such as food and housing. The type of housing also impacts poverty rates, with a higher proportion of renters than homeowners among those below the poverty line. Sole parent families have the highest poverty rates, at 35%, and their children are more than three times as likely to live in poverty compared to children in couple families.
One suggestion is to increase the adequacy of JobSeeker and family payments so that everyone can afford basics such as rent, food, medication and education. Another proposal is to build more social housing, as there is currently a national shortage of homes for people in the lowest 20% of household incomes.
Poverty is a relative concept, describing people who cannot participate in activities that most people take for granted. In Australia, people living in poverty may have to skip meals to pay for their children's textbooks or school excursions.
