Australia is experiencing a cost of living crisis. With housing, food, utilities and other everyday essentials rising disproportionately to wage growth, Australian households are struggling to make ends meet. According to a report by the Salvation Army, the crisis has pushed tens of thousands of Australians below the poverty line: approximately 3.3 million Australians, including 700,000 children, now live below the poverty line. The most marginalized and disadvantaged groups are most harshly impacted by the cost of living crisis.

Rising Costs

High inflation rates, coupled with income level, primarily instigated recent increases in the cost of living in Australia. The Consumer Price Index, which measures household inflation, increased by 5.1% in 2022, the highest since the goods and services tax was introduced to Australia 20 years ago. This stubbornly high inflation, likely prompted by the COVID-19 pandemic and the Russo-Ukrainian conflict, resulted in food, rent, petrol and gas prices skyrocketing — in 2022, housing and food and non-alcoholic drinks stood as the first and second highest household expenses respectively.

A surge in migration to Australia further contributes to the cost of living crisis. From July 2022 to March 2023, the Department of Home Affairs reported the following statistics regarding the number of approved visas: permanent skilled workers increased by 111.7% to 144,040 from 68,055; student visas rose 154.4% to 511,149 from 200,941 and visitors increased by 449.2% to 3,195,988 from 581,888.

The Struggle in Numbers

A survey of 1,700 Australians found that 93% of responders struggled to afford basic items. A poll conducted by the Guardian revealed that 70% of Australian households are not able to comfortably afford housing expenses; 68% are not able to comfortably afford childcare, school education and insurance and 51% cannot afford groceries and food. A survey conducted by the Salvation Army found that more than half of respondents skipped meals and could not afford essential health care. Indigenous people in remote areas of the country are hit particularly hard by the surge in freight prices, making every day a struggle to secure food and other necessities.

Efforts Underway

However, Australia is slowly addressing economic issues with the help of several organizations and policies. Among these, in the year 2021-2022, the Salvation Army’s annual Red Shield Appeal distributed $32.6 million to Australians in need of financial assistance and is open to donations for the next period’s funding. The Red Shield Appeal funds also support marginalized groups, such as women and child refugees in crisis. Tony Burke, the Minister for Industrial Relations of Australia, is working to increase the minimum wage and pay for labor hours and contractors. The cost of living crisis in Australia reminds the world that even developed countries are not exempt from facing poverty. Global efforts to alleviate poverty must prioritize the most marginalized and disadvantaged groups, even in developed countries.

– Lauren Liu
Photo: Wikimedia Commons