A new report on poverty has found that 3.7 million people in Australia are living below the poverty line, a significant increase that places the national poverty rate at 14.2%. The findings, released at the beginning of Anti-Poverty Week, reverse the progress made during the pandemic and indicate that more than one in seven people are now struggling to meet basic living costs.
The joint report from the Australian Council of Social Service (ACOSS) and the University of New South Wales (UNSW) identifies the withdrawal of COVID-era income supports and a dramatic surge in housing costs as the primary drivers behind the increase. The study, titled “Poverty in Australia 2025: Overview,” reveals that the situation is particularly dire for children, with one in six now living in poverty. Researchers and advocates have described the findings as a stark reminder of a pressing national issue, calling for urgent and substantial government action to address the growing crisis.
Key Data from the National Study
The report is based on the latest available data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. It establishes the poverty line as 50% of the median household after-tax income. For the 2022–23 period, this threshold was calculated at $584 per week for a single adult and $1,226 per week for a couple with two children. Households living in poverty had an average weekly income that was $390 below this line, highlighting a substantial gap between income and essential expenses.
The current poverty rate of 14.2% is a sharp rise from the 12.4% recorded in 2020–21, when the figure was equivalent to one in eight people. The reversal follows a brief period of improvement during the height of the COVID-19 pandemic. Researchers note that the temporary doubling of the JobSeeker payment and other supplements successfully reduced the poverty rate in 2020. However, with the termination of these support measures, the poverty level has not only returned to pre-pandemic levels but has surpassed them.
Housing Crisis as a Central Factor
The study provides extensive evidence linking the poverty surge directly to Australia’s escalating housing crisis. The cost of renting has become a critical burden for low-income households, with median advertised rents for units climbing dramatically in major cities between June 2021 and June 2023. Brisbane experienced a 41% increase, Sydney saw a 40% rise, and Melbourne rents grew by 34%.
This spike in housing costs has intensified what is known as “rental stress,” a measure for households spending more than 30% of their income on rent. The report found that the proportion of low-income renters experiencing rental stress increased from 52% in 2020–21 to 57% in 2022–23. According to Dr. Yuvisthi Naidoo, a senior research fellow at UNSW’s Social Policy Research Centre, the steep increase in rents has had a particularly severe impact on people with the lowest incomes.
Children and Families Disproportionately Affected
The findings reveal a troubling situation for the nation’s youngest residents. The child poverty rate now stands at one in six, which translates to 757,000 children living in households that cannot afford essentials. This demographic is especially vulnerable to the long-term consequences of economic hardship, which can impact education, health, and future opportunities.
For families with children living in poverty, the financial shortfall is even more pronounced than the general average. These households were, on average, $464 below the poverty line each week. This significant income gap makes it extremely difficult for parents to cover basic needs, including stable housing, nutritious food, and educational resources for their children.
Expert Commentary and Analysis
Leaders from the organizations that produced the report expressed deep concern over the findings. Dr. Naidoo of UNSW stated that it is unacceptable for one in seven people to be living in poverty in one of the world’s wealthiest countries. She emphasized that the data clearly shows how poverty levels fell with enhanced government support during the pandemic and rose sharply once those payments were removed and housing costs began to soar.
Professor Attila Brungs, Vice-Chancellor of UNSW, described the report as a stark reminder that poverty remains a pressing national issue and highlighted the need for strategies that ensure prosperity is shared more equitably across society. Echoing these concerns, ACOSS CEO Dr. Cassandra Goldie stated that while the government has taken some positive steps, such as advocating for minimum wage increases, much more needs to be done to reverse the current trend.
Recommendations for Government Action
In response to the data, ACOSS has outlined a series of policy recommendations aimed at alleviating poverty. Dr. Goldie called for the federal government to fix what she described as “woefully inadequate” income support payments. A central pillar of the proposed solution is to substantially raise the rate of social security payments like JobSeeker to ensure they provide a sufficient safety net.
Beyond direct financial support, the organization also urged the government to set clear, time-linked targets for poverty reduction to create accountability. Further recommendations include a major investment in social housing to address the affordability crisis and a commitment to achieving full employment. According to advocates, a multi-faceted approach that combines adequate income support, affordable housing, and secure employment is essential to making meaningful progress in reducing poverty.
