The working poor are individuals or households with at least one member employed, but whose earnings are so low that they still fall below the official poverty line, struggling to afford basic necessities despite working. They often hold low-wage jobs, sometimes part-time or insecure, and lack sufficient income to cover living expenses, highlighting issues with job quality and inadequate pay.
The working poor are people who spent at least 27 weeks in the labor force (that is, working or looking for work) but whose incomes still fell below the official poverty level.
There has been talk of a new phenomenon of 'working poverty' in Australia, whereby the levels and concentration of low pay are combining to see incomes in a significant number of households fall below the poverty line even where family members are in paid employment.
A low income in Australia varies, but generally involves earning below the median (around $1,425/week in Aug 2025) or below specific government thresholds, like the $948/week ($24,95/hr) National Minimum Wage (as of July 2025) for full-time work, with lower thresholds applying for benefits like the Low Income Health Care Card (around $800/week for singles). For tax purposes, incomes under $37,500-$45,000 might qualify for offsets, while affordable housing eligibility depends heavily on household size, with singles needing under $52,100 annually for low-cost options.
These guidelines are adjusted each year for inflation. In 2025, the federal poverty level definition of low income for a single-person household is $15,650 annually. Each additional person in the household adds to the total. For example, the poverty guideline is $32,150 per year for a family of four.
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 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.
Living on low pay can lead people into debt and feelings of low self-esteem. Low pay is defined every year in relation to the cost of living by the Minimum Income Standard Project. By their calculations, for a single person household anything less than £28,000 a year, before tax, counts as low pay.
How much do you need to live comfortably in Australia? Living comfortably in Australia varies greatly depending on factors such as location, lifestyle and personal preferences. As a general guide, a single person living outside of a major city would need an annual income of $70 - $80k per annum or $5,800+ per month.
The only employees who can be paid less are:
There are four kinds of poverty typically discussed: absolute, relative, situational, and generational.
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.
The working poor are working people whose incomes fall below a given poverty line due to low-income jobs and low familial household income. These are people who spend at least 27 weeks in a year working or looking for employment, but remain under the poverty threshold.
The World Bank classifies economies for analytical purposes into four income groups: low, lower-middle, upper-middle, and high income.
A social class is a group of people who share a similar economic situation, such as occupational level, income and wealth. There are four main social classes in society: upper class, middle class, working class, and underclass.
In 2025, single working-age adults need a gross annual income of £30,500 to reach MIS, up from £28,000 in 2024. Working-age couples need £43,000 (£21,500 each) to have enough disposable income to reach MIS (£40,600, or £20,300 each, in 2024).
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.
Generally, low income is considered to be 50% or less of area median income, moderate income is 80% of area median income.
Yes, $50 an hour ($98,800/year) is a very good wage in Australia, significantly above the average full-time earnings and offering a strong income for most lifestyles, common in skilled trades (electricians, plumbers) and professional roles, though living costs, especially housing in major cities, can influence its purchasing power.
Currently, 34 states, territories and districts have minimum wages above the federal minimum wage of $7.25 per hour. Five states have not adopted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina and Tennessee. Three states, Georgia, Oklahoma and Wyoming, have a minimum wage below $7.25 per hour.
Yes, AUD 10,000 per month is a very good salary in Australia, placing you in a high income bracket, well above the average and median earnings, allowing for comfortable living, significant savings, or a high-end lifestyle, though costs vary greatly by city (e.g., Sydney is expensive) and personal circumstances like owning a home.
In 2022 the median income in Australia was $65,000 a year according to the Australian Bureau of Statistics. Anyone making less than this amount would be considered working class. Anyone making more than $137,000 falls in the top 10% which is considered upper class.
Lower middle class (32%) Semi-professionals and craftsmen with some work autonomy; household incomes commonly range from $35,000 to $75,000. Typically, some college education.
The New York Times has used income quintiles to define class. It has assigned the quintiles from lowest to highest as lower class, lower middle class, middle class, upper middle class, and upper class. These definitions equate class with income, permitting people to move from class to class as their income changes.