Australia’s income support system is leaving large numbers of people below the poverty line, according to new research from the ACOSS and UNSW Sydney-led Poverty and Inequality Partnership released 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 per cent), Youth Allowance (73 per cent) and Parenting Payment (71 per cent).
‘JobSeeker, Youth Allowance and Parenting Payments are so low they are forcing people into poverty,’ said ACOSS CEO 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. 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.’
Below the line
‘This research shows how far below the poverty line people on the lowest payments are living,’ said UNSW Sydney Scientia Professor Carla Treloar.
‘People in households relying on JobSeeker had incomes averaging $331 a week below the poverty line. For Parenting Payment households it was $236 a week.
‘These payments leave people a long way from being able to cover the basics, and substantially lifting them would go a long way to closing those gaps.’
ACOSS is calling on the government to lift the lowest income support payments – including JobSeeker and Youth Allowance – to at least 61 per cent of the minimum wage and to introduce and improve supplements to cover essential costs above and beyond basic income support, including the extra costs of sole parenthood and disability.
They say Remote Area Allowance must also be substantially increased to reflect remote costs.
ACOSSI is also calling for more social housing and to ensure 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 per cent of the population – were living in poverty in 2022–23, including one in six children.
Lifting those in need
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,’ Professor 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 said, ‘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.
‘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.’
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