We need a more humane budget - now more than ever
Today’s post, sourced by the Antipoverty Centre (@antipovertycent), sheds more light on the experiences of Australians reliant on income support in the lead up to the delivery of the Federal budget this month. The author, Fi G, discusses cost of living pressures, shares the difficult decisions she faces in dealing with those pressures in a low income household, and makes some recommendations for spending priorities in the budget.
As the cost-of-living continues to grow, and rental affordability is in a rapid state of decline, more and more Australians are finding it beyond difficult to access their basic needs.
According to the latest Poverty and Inequality Partnership report, 1 in 8 Australians are living in poverty, and this includes 1 in 6 children. The report acknowledges that some groups of people are more at risk of poverty than others; factors with the greatest impact include – age, gender, race, family relationships, sources of income, and disability. Some of the findings that really stood out to me include:
60% of households reliant on the jobseeker payment are living in poverty.
52% of tenants in public housing are living in poverty
25% of people living with a disability are living in poverty
18% of households where the main income-earner is a woman are in poverty, compared with 10% of households where the main income-earner is a man.
Additionally, The Stark Reality of Australia’s Housing Crisis report states that two thirds of us are experiencing housing stress. Housing stress is defined as a person spending more than 30 per cent of their income on housing. 82 per cent of renters are spending more than 30 per cent of their income on housing.
The report also found that Rents for a two bedroom unit have risen 44.1% since March 2020 (national average), with wages rising only 2.5%. 18% of respondents said they were receiving Commonwealth Rent Assistance and a further 18 per cent said they were getting an alternate income support payment. Home ownership is increasingly out of reach and there is an increase in short-term over long-term rentals. This only adds to an overall level of housing instability and risk of homelessness for many Aussies.
A report released in August 2020 by HAAG and Social Ventures Australia found that the number of older women at risk of homelessness in Australia is a staggering 405,000. This includes:
165,000 women aged between 45 – 55 years and
240,000 women aged 55 years and over.
These numbers and others found in these reports are, in my opinion, a glaring indictment of Australian society. There is so much more evidence that I could share with you, but I think you can see how dire things are for many Australians, when they need not be so dire.
My Experience
Since the change of government my situation, not unlike that of many other Australians, has become more difficult, uncertain and stressful.
I live in a 2-adult household. We are both low-income earners who rely on income support. Living together to make ends meet. We are both chronically ill and disabled, with dietary and medical needs.
In the past, our weekly grocery basket would include a small variety of health promoting foods, needed household items and non-perishables to help us get through the times when utility bills needed to be prioritised. We were able to sustain the 2 of us with a level of ease for $100 per week. In recent months to buy the same grocery basket can cost us between $120-140 per week, and it usually involves less fresh food, more frozen (which we have also seen a steep increase in cost for), and basic items such as toilet paper can take up a larger portion of our budget – getting less for more – leaving us with less room for the foods we used to buy.
Our combined household income is just over $1700 per fortnight (approx. $875 per week). We rent privately and our rent was increased in November 2023 to $300 per week – this is approx. 34% of our household income. Yes, I know that this makes us lucky compared to other vulnerable Australians who pay significantly more (we know we live in one of Adelaide’s cheaper properties). And the unit was recently sold, so it is very likely that with the next lease renewal the rent will go up even more. Consequently, it has put us into a situation where it is too expensive for us to stay but it would be even more expensive to move – the homes that we can afford are now mostly located in rural or regional centres – away from our healthcare teams. Plus, I happen to have a pet, a sweet lump of a cat who is 9 years old and whom I've had since he was 9-weeks old.
Both of us are very sensitive to the heat, and as our uninsulated unit was built in the 1970’s and has undergone no significant upgrades since then – except the reinstalment of a ‘window-based air-conditioning unit’ which is not energy efficient in any way and can only moderately cool down the lower half of the room. We shut every door, use heavy curtains and sit in darkness during the day in summer. Our latest energy bill was the largest we have had in the years we have lived here, despite the energy company stating that the two of us use a little more than other one person households do in our area. This has meant that we have had to cut back on groceries to make payments towards the energy bill.
Then there is the cost of medications. Thankfully all but one are on the PBS, but even a small increase in medication cost means figuring out whether we can afford all of them or not – and trying to determine which ones are ‘okay’ to not take. This goes against doctors' advice, and ultimately means we might need further medical intervention in the future.
This is just a tiny snippet of the things we have found ourselves dealing with. It is constantly a balancing act. Do I even need to add that it is impossible for either of us to save any money? So, we don’t know how we will afford to move, and often must make food or medication sacrifices to pay the bills.
So, I hope that you can agree with me when I say that Australian needs a more humane budget.
My suggestions for Budget Priorities
So, what do I think the government's spending priorities should be? Here are just 5.
To raise the rate of all income support payments to at least $88 per day - the current poverty line – and to commit to benchmarking these rates against the Henderson Poverty Line biannually.
To increase the rate of income support supplements, such as Rent Assistance, Pharmacy Allowance and Energy Supplement to reflect the current (and projected) state of the cost-of-living and housing affordability crisis.
To invest a significantly greater amount to build more genuinely affordable public and social housing options
To invest in and prioritise refurbishing/updating currently unused public housing stock – as we need more housing now.
To make Medicare bulk-billing more attractive to health practitioners – so more Australians can see a doctor and access a range of health services.
Content moderator: The Antipoverty Centre