Australians are forced to rely on welfare payments and JobSeeker due to the cost of essential items, leaving them with little left over for other expenses.
A person living in a shared house and out of work would have just $127 a week left after paying for food, transport, and rent.
A new report released by Anglicare Australia revealed that a single parent household with two children would have only $24 left after paying for basic living expenses.
The organization’s cost of living index doesn’t take into account monthly or quarterly expenses, which means that the household would have to spend more money on repairs and other needs.
According to Kasy Chambers, the executive director of Anglicare Australia, it has been incredibly hard for people to live on welfare payments such as JobSeeker.
She noted that the rising cost of rent and food has made it harder for people to maintain their standard of living.
Various welfare groups and government advisory committees have been calling for a significant increase in the Youth Allowance and JobSeeker to lift individuals out of poverty.
Although the government has increased the base rate of payments by one-off increments in 2021 and 2023, the income support for job seekers and other groups has remained low, which has left them vulnerable to the effects of post-pandemic inflation.
Fuel and food prices remain high, and the rising cost of rent is also a result of the lack of supply and the low vacancy rates.
According to Chambers, many people are forced to skip meals and rely on the kindness of others to survive.
The latest cost-of-living index released by Anglicare Australia showed that a family with two adults and four kids would have a hard time covering basic needs, such as food, rent, and utilities, even with an additional $17 a week.
The calculations included the cost of rent assistance, which was increased in the last budget.
Chambers noted that without action by the government, people will be pushed further into poverty and homelessness.