New ACOSS and UNSW Sydney research shows almost two million Australians in households relying mainly on income support were below the poverty line.
Australia’s income support system is leaving large numbers of people below the poverty line, according to new research from the Australian Council of Social Service (ACOSS) and UNSW Sydney-led Poverty and Inequality Partnership released today, at the start of Anti-Poverty Week.
The report, Poverty in Australia 2026: Who is affected , revealed three in four people in households relying on Jobseeker and Youth Allowance were below the poverty line.
It also showed half of all people in households relying mainly on income support were living in poverty in 2022-23 – around 1.9 million people, including children. The risk was highest in households relying mainly on JobSeeker Payment (76%), Youth Allowance (73%) and Parenting Payment (71%).
“JobSeeker, Youth Allowance and Parenting Payments are so low they are forcing people into poverty,” says ACOSS CEO Dr Cassandra Goldie.
“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 says.
“This is a policy choice and the government can fix it.
“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.”
UNSW Sydney Scientia Professor Carla Treloar says the research shows how far below the poverty line people on the lowest payments are living.
“People in households relying on JobSeeker had incomes averaging $331 a week below the poverty line,” Prof. Treloar says.
“For Parenting Payment households it was $236 a week,” she says.
“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.”
Lifting those in need
ACOSS calls on the government to lift the lowest income support payments – including JobSeeker and Youth Allowance – to at least 61% of the minimum wage.
ACOSS is also calling on the government to introduce and improve supplements to cover essential costs above and beyond basic income support – including the extra costs of sole parenthood and disability.
Remote Area Allowance must also be substantially increased to reflect remote costs. More social housing is needed – as well as ensuring employment services help people overcome barriers to paid work – alongside a commitment to enough jobs and hours for people who need them.
The findings build on the partnership’s earlier overview report, which found 3.7 million people – or 14.2% of the population – were living in poverty in 2022-23, including one in six children (757,000 children).
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.
UNSW Vice-President Societal Impact, Equity and Engagement Professor Verity Firth AM says poverty is not inevitable and this report shows that it is not evenly distributed.
“It falls hardest on people already facing barriers, including sole parents, older people and those relying on income support,” Prof. Firth says.
“Through the Poverty and Inequality Partnership, UNSW is working with community organisations to turn our shared commitment to tackling poverty into practical action.
“By bringing together research, lived experience and community expertise, we’re sharpening the national focus on poverty and inequality and helping identify solutions that can drive meaningful change.”
Mission Australia CEO Sharon Callister says “three in four people in households reliant on Jobseeker or Youth Allowance are living in poverty, as are more than half of people living in social housing.
“People should not have to struggle to afford essentials or worry about keeping a roof over their heads,” Ms Callister says.
“Through our services and community housing, we see every day how poverty can push people into homelessness.
“Governments must provide adequate income support, invest in more social and affordable housing and fund the support people and families need to stay safely housed.”
The report is the 30th from the ACOSS and UNSW Sydney Poverty and Inequality Partnership and uses data from the Melbourne Institute’s Household, Income and Labour Dynamics in Australia (HILDA) Survey for 2022-23.
The estimates predate increases to income support and Commonwealth Rent Assistance that began in September 2023.
Poverty is measured using a benchmark of 50% of median household after-tax income, adjusted for household size and housing costs. Before housing costs were deducted, the poverty line was $584 a week for a single adult and $1,226 for a couple with two children.
Among people in households relying mainly on income support, poverty affected:
- 76% in JobSeeker Payment households – 250,000 people.
- 73% in Youth Allowance households – 29,000 people.
- 71% in Parenting Payment households – 204,000 people.
- 56% in Disability Support Pension households – 362,000 people.
- 40% in Carer Payment households – 106,000 people.
- 35% in Age Pension households – 574,000 people.
