Inflationary government spending is missing the Aussies who need it most and driving up interest rates for everyone else.
Record government spending that has turbocharged inflation and forced the RBA to raise rates may not be filtering into the communities that need it most, with new data showing three in four households reliant on JobSeeker are living in poverty.
The joint research from Australian Council of Social Service (ACOSS) and UNSW found that this included one in five older singles and one in six children within income support households.
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ACOSS chief executive officer Cassandra Goldie said almost 2 million Aussies are destitute. Picture: NewsWire / Martin Ollman
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There were 757,000 kids under-15 living in poverty and children in sole parent households were almost three times more likely to be impoverished than those in coupled households.
ACOSS chief executive officer Cassandra Goldie said that government payments are so low, they’re pushing 1.9 million people into poverty across all kinds of support.
“Almost two million people relying on government support are being pushed past the brink of destitution in one of the wealthiest countries in the world,” Dr Goldie said.
“This is a policy choice and the government can fix it.
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The 2026-27 federal budget allocated $18.5b to JobSeeker. Picture: NCA NewsWire / David Geraghty
“As interest rate hikes push more people out of paid work, we are urging the government to take direct action both to reduce living costs for low-income households and to strengthen the safety net for those who cannot access paid work,” she said.
The Budget for this financial year projects 37 per cent or $308b of government funds will go towards social services and welfare. About $18b is specifically allocated to just JobSeeker payments.
About 16.4 per cent or $136.9b of the Budget is allocated to health spending, with $24.6b for the Pharmaceutical Benefits Scheme that subsidises medications.
The research used data for 2022-23 and set the poverty line at $584 a week for a single adult or $1,226 for a couple with two children.
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Half of Aussie households on income support are impoverished compared to 8 per cent of households not receiving support. Source: UNSW / ACOSS
The report found 49 per cent of supported households were in poverty and UNSW Sydney Scientia Professor Carla Treloar said it shows how far below the poverty line some people live.
“People in households relying on JobSeeker had incomes averaging $331 a week below the poverty line,” Dr Treloar said.
“For Parenting Payment households it was $236 a week.
“These payments leave people a long way from being able to cover the basics. Substantially lifting them would go a long way to closing those gaps,” she said.
The report’s key recommendations include lifting all income support to match the Age Pension and increasing social housing supply.
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