A new report by the Australian Council of Social Service (ACOSS), released to mark the start of Anti-Poverty Week, reveals that one in six Australian children now live in poverty. Approximately 757,000 children aged 0–14 years, or 15.6% of this age group, are living below the poverty line. This marks an increase from 13% in 2020, driven primarily by the removal of COVID-19 income support payments and rising living costs.
The report highlights that families with children living below the poverty line earn an average of $464 per week, which is 44% less than non-affected families. This substantial income gap contributes to severe financial stress and hardship for affected households. Despite measures by the Albanese government in 2023 to increase social security support and raise payment rates above inflation, the poverty gap remains significant, especially for young people receiving youth allowance.
Child poverty closely mirrors overall poverty trends but remains consistently higher. The pandemic caused child poverty to rise from 13% in 2020–21 to 15.6% in 2022–23. While certain payments, such as JobSeeker plus Family Tax Benefit for partnered families with children aged 8–12, were increased by $72 per week, families still fell $299 below the poverty line. The largest shortfalls were observed among recipients of Youth Allowance and JobSeeker Payment.
Poverty has far-reaching impacts on children and young people, affecting housing stability, financial security, social participation, mental health, nutrition, education, and friendships. Growing up below the poverty line also creates long-term barriers, increasing the risk of continued socioeconomic disadvantage into adulthood.
ACOSS CEO Dr. Cassandra Goldie stressed that while some government actions have helped, much more is needed to reverse the trend. She urged the government to improve income support payments, set clear poverty reduction targets, expand social housing, and commit to full employment to ensure meaningful progress in reducing child poverty in Australia.
