Poverty in Australia isn't due to a lack of resources but structural issues like rising living costs (especially housing), inadequate social security payments, low wages, insecure work, unequal access to jobs, education, and services, and systemic disadvantage, meaning many working full-time still can't afford essentials after housing, creating a vicious cycle.
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.
Economists have also pointed out that global pressures, shifting energy policies, and supply chain disruptions have placed additional strain on the economy. While inflation has eased in some countries, Australia continues to face stubborn price increases.
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.
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 top 10 issues Australians say are the most concerning
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.
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.
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.
According to Credit Suisse's Global Wealth Report, the average wealth of Australian households was $628,000 per adult in 2020, the fourth highest in the world behind Switzerland, the United States and Hong Kong (North America as shown on the graph refers to the region, as does Asia-Pacific and Europe).
Living standards in Australia have been declining for years. Wages have stagnated while costs keep rising. And you're hit with endless taxes and levies. For many, Australia no longer feels like a land of opportunity—it feels like a financial trap.
The United States is #1 in the world's economy by nominal Gross Domestic Product (GDP) in 2025, with China as the second-largest and Germany third, according to data from organizations like the IMF. The U.S. leads due to its diverse industries, technological innovation, and strong financial system, with its dollar serving as a dominant global reserve currency.
The term "poverty traps" refers lo circumstances where the income tests in the Australian social security system trap social security recipients into dependence on Government income support.
The Outback, occupying most of inland Australia, is an immense, hot desert area with temperatures that range from extreme heat to cold. Summer temperatures in the Outback reach as high as 50°C (122°F), so it is nearly impossible for substantial human populations to exist without man-made infrastructure.
“More than one in seven Australians live below the poverty line,” said Community Mental Health Australia (CMHA) President Cathy O'Toole. “It's not getting better, it's getting worse,” added Cathy.
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?
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.
According to ABS data, just 2.61 million Aussies – or about 10 per cent of the population – earn $100,000 or more a year. Many people will never reach a six-figure income in their working lives.
Yes, AUD 5,000 (around $3,300 USD) can be enough for a single person's month in Australia, especially in regional areas or if you're budget-conscious and can find work quickly, but it will be tight in major cities like Sydney or Melbourne, where it covers basics but leaves little for luxury, according to Anzuk Education and Reddit users, as city living costs, especially rent, can quickly consume most of that, requiring careful planning for accommodation, food, and activities.
But despite the economic uptick of recent years, Tasmania is still the poorest Australian state.
Yes, $36 an hour (around $75k annually) is a solid wage in Australia, generally considered good as it's above the minimum wage and near or slightly above the median earnings for many full-time roles, providing a comfortable living, though it's below the average for higher-paid professionals, depending on location and lifestyle needs.
Here are some of the lowest-paid jobs in Australia:
1: Shampooer. The worst-paying job on the list is shampooers. They work in hair salons washing and rinsing customers' hair. Mean hourly wages are $14.07 and mean annual wages are $29,260.