Cost of Living Index: income support payments

Abstract

For years, Australians have been hearing reports of people on JobSeeker and other income support payments struggling to stay afloat. Anglicare Australia has documented people skipping meals, being pushed into credit card and payday loan debt, and navigating precarious and unstable housing.

Recent years have seen people on the lowest incomes fall even further behind. Inflation, extreme weather events that have affected food supply and distribution, the destabilisation of the world energy market, and the COVID-19 pandemic have all impacted the cost of basic goods. The price of fresh food has increased dramatically, and the cost of petrol reached record highs last year. To make matters worse, the rental market has never been less affordable as Australians spend more and more of their incomes on housing.

This Index highlights that many people living on income support payments are structurally unable to afford the basics of life. Anglicare Australia is calling on the Australian government to act and pull these Australians out of poverty, and to protect them from the worst impacts of our current cost-of-living crisis.

The analysis was prepared by comparing data on key living costs against rates of income support. The Index considers weekly living costs by analysing three core weekly expenses, rent, transport and food. It is important to note that there are various other living costs which have not been included, such as utilities, telecommunications, insurance, and household goods. These costs tend to be covered on a monthly or quarterly basis, and in some cases can be the subject of payment plans or even delayed if needed. This analysis identifies income remaining after weekly expenses to cover these costs, along with any emergency expenses.