Poverty gaps by income support payment
The poverty gap measures the average depth of poverty among households below the poverty line by looking at the difference between their incomes and the poverty line. A large poverty gap shows that the majority of those in poverty are likely to have incomes well below the poverty line. Poverty gaps decline whenever the income of anyone below the poverty line increases, whereas poverty rates only decline when income increases by enough to raise someone from below the poverty line to above it. Thus both poverty rates and poverty gaps are important when looking at poverty. This graph and table show poverty gaps for people in households living below the poverty line when the reference person receives one of the listed income support payments. It is important to read these in conjunction with the poverty rates for that particular group.
2017-18
This graph shows that average poverty gaps, adjusting for household size, are greatest for recipients of Newstart Allowance ($278), Youth Allowance ($262), Parenting Payment Single ($237) and Carer Payment ($188).2015-16
This table shows that average poverty gaps, adjusting for household size, are greatest for recipients of Newstart Allowance ($249), Youth Allowance ($244), Parenting Payment Single ($161) and Carer Payment ($182).Rate of poverty by labour force status
This graph compares poverty rates among people according to the labour force status of the household reference person.
2017-18: People who are of working age but who are lacking paid employment face an elevated risk of poverty, at 66% using the 50% of median income poverty line and 76% using the 60% of median income poverty line. Where the reference person is aged under 65 and is not in the labour force, 45% of households are in poverty using the 50% of median income poverty line; and 56% using the 60% of median income poverty line. Many of these households have a reference person with a disability or with caring responsibilities and rely on payments such as Disability Support Pension, Parenting Payment or Carer Payment. Poverty rates are much lower where the household reference person is employed fulltime (6% using the 50% median income poverty line and 9% using the 60% median income poverty line). Since minimum wages are above the poverty lines for a single adult, those in households with a reference person employed fulltime living below the poverty line are likely to rely on a single wage to support a partner and/or children, or to be paid below the minimum wage. In support of this view, the poverty rate among households with children whose reference person is employed fulltime is significantly higher, at 10% in sole parent families (15% using the 60% median income poverty line) and 7% among couples with children (12% using the 60% median income poverty line). In these cases, fulltime wages together with Family Tax Benefits, are insufficient to lift families with children out of poverty. Households relying on a single part-time wage are more than twice as likely as those relying on a fulltime wage to be in poverty (15% using the 50% median income poverty line or 26% using the 60% median income poverty line). Among households with children whose reference person is employed part time, the rate of poverty is 11% in sole parent families and 20% among couples with children using the 50% median income poverty line, and 30% in sole parent families and 28% among couples with children, using the 60% median income poverty line.
2015-16: People who are of working age but who are lacking paid employment face a high risk of poverty, at 68% using the 50% of median income poverty line and at 78% using the 60% of median income poverty line. Where the reference person is aged under 65 and is not in the labour force, 45% of households are in poverty using the 50% of median income poverty line; and 60% using the 60% of median income poverty line. Many of these households have a reference person with a disability or with caring responsibilities and rely on payments such as Disability Support Pension, Parenting Payment or Carer Payment.
Profile of poverty by labour force status
These graphs show the profile of households in poverty by the labour force status of the household reference person.
2017-18 (All people)
Although households that rely on paid employment have a much lower rate of poverty, they make up 38% of all people below the 50% median income poverty line, and 42% of all people below the 60% median income poverty line.
2017-18 (Employed fulltime)
2017-18 (Employed parttime)
2015-16
Although households that rely on paid employment have a much lower rate of poverty, they make up 39% of all people below the 50% median income poverty line, and 41% of all people below the 60% median income poverty line. This reflects the fact that three times as many people live in households whose reference person receives income from employment compared with income support payments.Rate of poverty among adults with disability
This graph looks at the poverty rate of people with disability. People with disability, especially those with more severe incapacities (people who are limited in the core activities they can perform) face an above-average risk of poverty. It is likely that poverty is underestimated amongst people with disability, as the extra costs of a disability are not taken into account when assessing whether people are living below the poverty line, such as the costs of adjustments to home or workplace; care costs; additional transportation costs; and medical and pharmaceutical costs.
2017-18: The rate of poverty among adults with disability is 17.2% using the 50% median income poverty line and 28.4% using the 60% median income poverty line.
2015-16: The rate of poverty among adults with disability is 16.5% using the 50% median income poverty line and 29.4% using the 60% median income poverty line.
Profile of poverty among adults with disability
This graph shows the profile of households in poverty by the disability status of the main reference person.
2017-18
This shows that 37% of people in poverty have disability using the 50% of median income poverty line; and 39% using the 60% median income poverty line.2015-16
This shows that 38% of people in poverty have disability using the 50% of median income poverty line; and 41% using the 60% median income poverty line. This reflects a combination of the overall rate of disability (18% of the total population in 2015), the higher rate of disability among people aged 65 and over, and the average risk of poverty among people with disability.Rate of poverty by country of birth
This graph shows the poverty rate of people by their country of birth, divided into those born in Australia, those born in a mainly English-speaking country; and those born elsewhere.
2017-18: The graph shows that people born overseas in a country where English is the main language have a much lower poverty rate – at 9.7% using the 50% median income poverty line and 15.9% using the 60% median income poverty line - compared with those born elsewhere – at 17.5% using the 50% median income poverty line and 27.1% using the 60% median income poverty line.
2015-16: The graph shows that people born overseas in a country where English is the main language have a much lower poverty rate – at 10% using the 50% median income poverty line and 17% using the 60% median income poverty line - compared with those born elsewhere – at 17% using the 50% median income poverty line and 27% using the 60% median income poverty line. This likely reflects the lower employment rates among people from countries where English is not the main language. For example, in December 2015, of all new adult migrants from North-West Europe, 82% were employed 5-10 years after arrival, compared with only 38% of those who migrated from North Africa or the Middle East. This reflects a range of employment factors including access to labour market information and access networks; discrimination in employment; and recognition of workforce skills.
Profile of poverty by country of birth
This graph shows the profile of adults in poverty by their country of birth.
2017-18
This graph shows that the majority of adults in poverty are people born in Australia (59.3% of 50% median income poverty line and 59.4% of 60% median income poverty line), due to the higher proportion of adults born in Australia.2015-16
This graph shows that the majority of adults in poverty are people born in Australia (62% of 50% median income poverty line and 63% of 60% median income poverty line), due to the higher proportion of adults born in Australia.Profile of poverty by housing tenure
This shows the profile of adults in poverty by their type of housing occupation - whether they own their home with or without a mortgage; whether they rent either privately or publicly; or whether they have another form of occupation type.
2017-18
This graph shows that approximately half of all households living below the poverty line were renting, at 49% using the 50% median income poverty line and 45% using the 60% median income poverty line.
2015-16
This graph shows that approximately half of all households living below the poverty line were renting, at 53% using the 50% median income poverty line and 47% using the 60% median income poverty line. This shows that renters are over-represented among households in poverty, because only 31% of all households were renting in 2016.
Rate of poverty by location
This graph shows the rate of poverty by location. It shows that poverty is significantly higher among people living outside capital cities than those who live in capital cities.
2017-18: The rate of poverty among people living outside capital cities is 13.8% using the 50% median income poverty line and 22.3% using the 60% median income poverty line; while the rate of poverty among people living inside capital cities is 13.13.5% using the 50% median income poverty line and 20.3% using the 60% median income poverty line.
2015-16: The rate of poverty among people living outside capital cities is 14% using the 50% median income poverty line and 24% using the 60% median income poverty line; while the rate of poverty among people living inside capital cities is 13% using the 50% median income poverty line and 20% using the 60% median income poverty line.
Rate of poverty by state/territory of residence
This graph compares average poverty rates in the eight states and territories.
NOTE: These average figures mask income disparities among different groups in the community. For example, Aboriginal and Torres Strait Islander people represent 30 per cent of the Northern Territory population of 245,740 people. In the Northern Territory, as elsewhere, there are substantial income disparities between Aboriginal and Torres Strait Islander people and the rest of the population. In 2016, median personal income for Indigenous individuals was $281 per week, just 26% of the $1,072 received by other Northern Territorians. Altman J (2017), Deepening Indigenous poverty in the Northern Territory, 14th November 2017. College of Asia and the Pacific, Australian National University.