The number of people living in poverty in Australia has increased to 1 in 7, according to a new report released today - at the start of Anti-Poverty Week.
As many as 14.2% of the population - or 3.7 million Australians - were living below the poverty line in 2022-23, according to the Poverty in Australia 2025: Overview report released today.
The report, from the Australian Council of Social Service (ACOSS) and UNSW Sydney-led Poverty and Inequality Partnership , uses the latest available data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey .
These latest data mark an increase from 12.4% of the population - or 1 in 8 people - living below the poverty line in 2020-21.
The study also found the poverty rate for children is 1 in 6, equalling 757,000 children.
"This research shows that 1 in 7 people are now living in poverty. This is unacceptable in one of the wealthiest countries in the world," says Dr Yuvisthi Naidoo, Senior Research Fellow at UNSW's Social Policy Research Centre .
"The rate of people living in poverty decreased in 2020 due to the temporary doubling of JobSeeker during COVID," Dr Naidoo says.
"But that has sharply risen above pre-pandemic levels due to the removal of COVID payments and rising housing costs," she says.
"The steep increase in rents in recent years has had a particularly severe impact on people with the lowest incomes."
The report found from June 2021 to June 2023, the median advertised rent for units rose from $486 per week to $680 in Sydney (40%), from $395 to $528 in Melbourne (34%) and from $394 to $554 in Brisbane (41%).
The proportion of low-income renters (the lowest 20% of earners) spending more than 30% of their income on rent - known as rental stress - increased from 52% in 2020-21 to 57% in 2022-23.
UNSW Vice-Chancellor and President Professor Attila Brungs says the numbers are a stark reminder that poverty remains one of Australia's most pressing challenges.
"This report is sobering but it also strengthens our resolve to drive our strategic aspiration, through our teaching and innovation, to deliver benefits and improvements for all individuals, across every part of society," Prof. Brungs says.
"Even our work on improving productivity tackles the broader challenge of ensuring that prosperity is shared by everyone, not just a few."
The steep increase in rents in recent years has had a particularly severe impact on people with the lowest incomes.
UNSW Vice-President, Societal Impact, Equity & Engagement, Professor Verity Firth says the report underscores the urgency of acting now.
"Our focus is on ensuring this evidence leads to change - towards tangible improvements for individuals, families and communities across the country," Prof. Firth says.
"Through our work with ACOSS, we aim to help shape fairer, evidence-based policies to reduce disadvantage and poverty in Australia, leading to better life outcomes for a significant group of Australians."
ACOSS CEO Dr Cassandra Goldie says the findings show much greater action is needed to tackle poverty.
"While the government has taken some steps to reduce the number of people living in poverty, including advocating for minimum wage increases and delivering small increases to JobSeeker and Rent Assistance, and payment reform for single parents, it must do much more," says Dr Goldie.
"The government must fix woefully inadequate income support payments, set targets to boost social housing stock and commit to full employment," she says.
"It should also adopt time-linked targets for poverty reduction and track progress."
The report found the poverty line, based on 50% of median household after-tax income, is $584 a week for a single adult and $1226 a week for a couple with two children.
People in households below the poverty line had household incomes averaging $390 per week below the line.
Families with children in poverty were on average $464 below the poverty line.
