Poverty is persistent and growing in Australia

The Productivity Commission’s latest report focusing on poverty, inequality and social mobility reveals some very concerning trends. It shows us that poverty levels remain stubbornly high with around one in seven people living in Australia experiencing poverty in 2022 – the highest level since 2001.

“Australia needs to pay as much attention to poverty as it does to the rest of our economic story – alongside productivity, population, and participation. This is because poverty impacts all age groups, is intergenerational and is persistent,”

said Travers McLeod, Brotherhood of St. Laurence’s Executive Director.

Reducing inequality is also critical in our fight against poverty in this country. As this report has shown, inequality entrenches poverty. This is largely because there is little buffer when adverse life events occur. There may be limited opportunities and services where you live, and little to no wealth resources to draw upon.

“Additionally, lower education levels, the need to rent your home and long-term health conditions create significant barriers to escaping poverty. These challenges compound over time.”

Each year, since its formation in 2023, the Economic Inclusion Advisory Committee (EIAC) has recommended the Federal Government increase the rate of JobSeeker and related income support payments. The current rate of these payments, which also include housing benefits, remains one of the lowest in the OECD.

“Lifting income support is a necessary condition for reducing poverty and inequality, along with the important reforms the Federal Government is advancing on employment, early childhood development, and place-based responses to entrenched disadvantage,”

said Travers McLeod.

Ahead of the 50th anniversary of the report of Australia’s first Commission of Inquiry into poverty in 2025, we are proposing Australia follows the lead of other countries like Canada and New Zealand by agreeing on a set of official poverty measures and which can identify all the components that are essential to reducing poverty and growing social mobility.

The Brotherhood of St. Laurence (BSL) is a social justice organisation working to prevent and alleviate poverty across Australia.

Media inquiries: Bridie Riordan M: 0491 159 256, media@bsl.org.au