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131014 PUDI Report

Regular reports on the growing Poverty, Unemployment, Debt and Inequality of the neo-capitalist world

Australia:

Women are significantly more likely to experience poverty than men, with 14.7% of women compared with 13% of all men experiencing poverty in 2011-12.”

Compared with other age groups, children and older people face higher risks of poverty (17.7% and 14.8% respectively), reflecting the higher costs facing families with children and the fact that many older people receiving the Age Pension do not have sufficient additional income to place them above the poverty line.”

Sole parents are at a particularly high risk of poverty, with a third (33%) of sole parents in poverty in 2012. As a consequence just over a third (36.8%) of all children in poverty were in sole parent households. This reflects the lower rates of employment among sole parent households, especially those with very young children, and low levels of social security payments for these families.”

Poverty is higher amongst adults born in countries where the main language is not English (18.8%) than amongst those born overseas in an English speaking country (11.4%), or in Australia (11.6%).”

The rate of poverty is higher amongst Aboriginal and Torres Strait Islander people (19.3%, compared with 12.4% of the total Australian population, based on based on 2011 HILDA data).”

People with a disability face a significantly higher risk of poverty than the average. In 2009 this was 27.4% compared with 12.8% for the total population, and this does not take account of the additional costs relating to disability (for housing, transport and medical services) borne by many people with a disability.”

The people most likely to be living in poverty are those who are unemployed (61.2%), or in a household that relies on social security as its main source of income (40.1%) and particularly on the Newstart Allowance (55.1%) or Youth Allowance (50.6%). This is largely explained by the fact that many social security payments fall below the poverty line, even with Rent Assistance and other supplementary payments added to household income.”

For many social security payments, the maximum rate of payment (including Rent Assistance and Family Tax Benefit where applicable) was less than the poverty line, including the Newstart Allowance (which was $97 per week below the poverty line for a single person, and $118 per week for a couple with two children); Youth Allowance ($193 per week below the poverty line); Parenting Payment Single ($20 per week); and the Pension Payment ($26 per week for a single person and $36 below the poverty line for a couple with two children).”

The indexation of social security payments such as the Newstart Allowance, Youth Allowance and the Parenting Payment to CPI means that the payment does not increase as community living standards improve; and is likely to result in higher poverty rates over time than would be the case if payments were indexed to wages, as they are with the Age Pension.”

Poverty increased between 2010 and 2012 (from 13% to 13.9%); and over the longer term from 2004 to 2012 (the best available data suggests an increase from 11.8% to 12.8%).”

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