Average poverty gap by main source of income ($pw)
The above graph shows the average poverty gap for households by main income source, and how that changed when COVID income supports were introduced in the fourth quarter of 2019-20. Average poverty gaps were higher for households relying mainly on wages ($324) or investment and other incomes ($499). The average poverty gaps for households mainly relying on social security fell substantially, by an average of $81 per week, when COVID income supports were introduced. Average poverty gaps for households mainly relying on wages or ‘other’ incomes rose (by $25 and $50 respectively), likely due to a change in the profile of households below the poverty line relying mainly on wages or investment income at this time.
Number of people in poverty by main household income source in 2019-20, and change in poverty
Half of people in poverty were in households relying mainly on social security (1,626,000 of all people in poverty). Over one-third of people in households in poverty relied mainly on wages (1,257,000 people of all people in poverty), reflecting the large number of wage-earning households overall. Poverty fell substantially (by 389,000 people) among people in households mainly reliant on social security. This was likely due to the $275 per week Coronavirus Supplement which almost doubled many of the lowest payments. Poverty also fell substantially - by 401,000 people - among people in households mainly reliant on wages, likely due to the introduction of JobKeeper Payment. Consistent with this, financial stress among households whose main income was from low-paid employment fell substantially in 2020 compared with 2019. On the other hand, poverty rose slightly (by 25,000 people) among people mainly reliant on ‘other’ income, which in this report mainly refers to investment income.
Number of people in poverty by family type in 2019-20, and change in poverty
The largest number of people in poverty are found in couple-with-children families (1,076,000 people compared with 665,000 people in sole parent families) due to the greater number of couple-with-children families overall. Single adults under 65 years have a slightly higher rate of poverty than those 65 years and older. Poverty fell substantially by 509,000 people in couple-with-children families and fell slightly in single person households of working age and among older couples by 5,000 people and 12,000 people respectively. Most of the overall reduction in poverty (647,000 people) occurred in couple-with-children families. In contrast to couples with children, poverty among people (including children) in sole parent families rose slightly by 21,000 people in the June quarter of 2020. Poverty also rose slightly among couples of working age without children (by 14,000 people) and older single people (by 24,000 people).
Number of people in poverty by gender in 2019-20, and change in poverty
As indicated above, the majority of people in poverty (1,754,000 out of 3,320,000 people) were women or girls. There were 1,765,000 people in poverty (men, women and children) in households where the main earner was a woman compared with 1,554,000 people where the main earner was a man.
Number of children in poverty in 2019-20, and change in child poverty
As indicated above, 761,000 children were living in poverty in 2019-20. 316,000 children were in poverty in 2019-20, more than three times the poverty rate for children in couple families. Most children in poverty were in couple families (431,000 children) rather than sole parent families (316,000 children). Poverty among children fell substantially, by 245,000 children, when COVID income supports were introduced. Surprisingly, the decline in child poverty in sole parent families was only small (3,000 children) compared with the large reduction in couple families with children (211,000 children).
Number of people in poverty by age in 2019-20, and change in poverty
The largest group living in poverty are people of working age (1,535,000 out of a total of 3,320,000 people in poverty) as that is the largest age cohort in the overall population. 761,000 children and 419,000 young people (15-24 years) are living in poverty. Among people aged 25 to 64 years, the poverty rate is below-average (1,535,000 people), reflecting the higher earnings of this age cohort. Poverty declined significantly for all age groups except older people when COVID incomes supports were introduced in the last quarter of 2019-20.
New research shows ‘pernicious effects’ of removal of Coronavirus Supplement
A new report from the Poverty and Inequality Partnership led by ACOSS and UNSW Sydney has found that while the Coronavirus Supplement introduced in 2020 gave recipients the breathing space to afford basics such as food and medication, its removal had a pernicious effect that hit hard. Australian experiences of poverty: risk precarity & uncertainty during COVID-19 found the extra $275 a week from April 2020 was critically important to improving wellbeing during the pandemic. The qualitative research study, based on phone interviews with 33 income support recipients, revealed the payment provided a reprieve from ongoing financial stresses and allowed recipients to plan for their future for the first time. But when the supplement was first reduced from September 2020 and then abolished in April 2021, participants were forced to return to acute financial stress and experienced increased feelings of exclusion. Report authors Professor kylie valentine, Dr Yuvisthi Naidoo and Dr…