Yes, poverty in Australia has been increasing, rising to 1 in 7 people (14.2%) in 2022-23, up from 1 in 8 (12.4%) in 2020-21, driven mainly by soaring housing costs and the removal of COVID-era income supports, with children and single-parent families particularly affected. Reports from ACOSS/UNSW and other organizations confirm this trend, showing persistent high rates and growing depth of poverty, exceeding pre-pandemic levels as living costs outpace income growth.
The proportion of all people in poverty rose by 1.8 percentage points from 12.4% (one in eight) in 2020-21 to 14.2% (one in seven) in 2022-23. The depth of poverty (average gap between incomes of people in poverty and the poverty line) increased from $372 per week to $390 over the same two-year period.
As many as 14.2% of the population – or 3.7 million Australians – were living below the poverty line in 2022–23, according to the Poverty in Australia 2025: Overview, opens in a new window report released today.
How does poverty in Australia compare with other countries? In the most recent data from the Organisation for Economic Co-operation and Development (OECD) (2021 or latest data), Australia had the 15th highest poverty rate of 36 OECD countries.
Yes, Australia is facing significant financial challenges, with many households struggling with the cost-of-living crisis, high interest rates, slowing economic growth, and rising government debt, leading to declining living standards despite the economy not being in official recession. Key issues include soaring housing and essential costs, stagnant real wages, weakening productivity, and increasing state and federal debt levels, creating a "gentle decline" where many feel financially squeezed.
The quality of the Australian way of life is collapsing. The Australian Way of Life Scoreboard, which measures the quality of the Australian way of life, has declined by 28.5% since 2000. 23 of 25 measures relevant to the Australian way of life have declined since 2000.
Yes, $70k is a fair salary in Australia, often near the median income, making it a decent living for a single person, especially outside major cities, but it can be tight in expensive areas or for those with high living costs like mortgages, with full-time averages now closer to $90k-$100k.
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South Sudan is widely considered the poorest country in the world in 2025-2026, consistently ranking first due to extremely low GDP per capita and a high percentage (over 80%) of its population living in extreme poverty, driven by prolonged civil conflict, displacement, and disruption of its agricultural economy. Other nations frequently cited as among the poorest include Burundi, the Central African Republic, and Yemen, also suffering from conflict and instability.
The poverty line in Australia is generally defined as 50 per cent of median household income. If someone was earning less than the below amounts (including a government income) in 2022, they were classed as below the poverty line: $454 a week for a single person. $725 for a sole parent with two children.
2021 or latest data
The OECD's estimate for the overall rate of poverty in Australia according to this graph is 12.6% (compared with our estimate for 2019-20 of 13.4%). This makes Australia's poverty rate the 15th highest among the 38 OECD countries.
Low income in Australia is generally defined as earning less than 50% of the median household income, which translates to roughly under $584/week for a single person or around $1,226/week for a couple with two children, though figures vary and government support has specific thresholds, like the $37,000 cap for the superannuation tax offset. Official poverty lines are set at half the median income, but factors like location (e.g., Sydney) and living costs significantly impact what's considered "low" in practice.
The main reasons of poverty are stated below:
Perth has surpassed Sydney as the least affordable capital city in Australia, relative to household incomes. Albo''s legacy -poverty & antisemetic violence.
South Sudan has the highest poverty rate, with approximately 82.3% of its population living in extreme poverty, largely due to ongoing civil conflict and economic collapse. 2. What are some of the poorest countries in terms of poverty rate as of 2026?
Five causes of poverty
Poverty is not just caused by individual circumstances but by major inequalities built into the structure of Australian society. Some of the main causes of this inequality and poverty are access to work and income, education, housing, health and services.
But despite the economic uptick of recent years, Tasmania is still the poorest Australian state.
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The richest country by GDP (PPP) per capita is often cited as Singapore, followed closely by Luxembourg, depending on the specific report and year, with Singapore leading in 2025 estimates with around $156,000-$157,000 per person, while Luxembourg is a strong contender just below that, highlighting small, finance-heavy economies as wealthiest per person.
"The economy is past the low point in growth. Gross domestic product (GDP) growth has been picking up nicely … so in our forecast we get into the 'low twos' (2 per cent) for 2026 for Australian GDP growth."
Cons of Living in Australia
Australia's current National Terrorism Threat Level is PROBABLE.
The average Australian full-time worker is now earning more than $2000 a week for the first time in history. New figures from the Australian Bureau of Statistics (ABS) show the average ordinary full-time weekly earnings for adults hit $2011.40 before tax in May.
Australia has high demand for workers in Healthcare (nurses, aged/disability carers, allied health), Tech (software engineers, cybersecurity, data analysts), Construction & Trades (managers, electricians, fitters, civil engineers), and Education (teachers, early childhood educators) due to an aging population, infrastructure projects, and digital transformation, with roles like Chefs, Project Managers, and Automotive Technicians also sought after across various industries.
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