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The cost-of-living crisis in Australia

Rising Cost of Living

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Australia is in the grip of a social crisis right now. With costs of living – utilities, groceries and everyday essentials – rising disproportionately to wage growth, the average household budget is being stretched to breaking point for thousands of families.

Additionally, with historically low rental vacancy across the country, inadequate supply of social housing and thousands of families on wait lists for public housing, the situation is set to get much worse for Aussies already struggling to afford a full meal or a week’s rent to keep their families fed and safe.

Inflation, or the rising costs of living is putting thousands of Aussies under immense financial hardship, making it impossible for many to make ends meet. Additionally, the financial challenges affecting the community are adding to the immense strain community services and assistance providers are already facing in their efforts to try and help households facing financial hardship and other effects of inflation.

How is the cost-of-living crisis affecting Australians?

According to government and research data, over 3.3 million Australians, including over 700,000 children, are currently living in poverty, and 40 per cent of renters believe they will struggle to pay rent over the next three months.

The current economic climate has led to a steady increase in people facing hardship. Data from Suicide Prevention shows that as at March 2023, 46 per cent of Australians have reported feeling increased pressure as the cost of living continues to rise – an increase of five per cent from the previous quarter (November 2022).

An alarming number of Aussie families feeling the pain of rising costs right now. With the cost of groceries, energy bills and fuel increasing dramatically over the past year, more than 40 per cent of Aussie households have struggled to afford household basics in the last three months, and over half of Australians say they will struggle to pay an essential bill over the next three months.

Percentage of price increases over the last 12 months

Source: ABS Consumer Price Index, Australia, March Quarter 2023

Research shows that shame and fear prevent many from seeking assistance when they need it most, but left unaddressed, issues such as homelessness, poverty, addiction and violence often lead to a vicious loop of cyclical and even generational disadvantage. According to a report by the University of Melbourne, children who experience poverty are more likely to remain in poverty as adults. Persistent poverty can also have prolonged mental health impacts.

How your Red Shield Appeal donation helps

The ripple effect of current and past events is making it increasingly challenging for households to cope, with the worsening housing crisis and rising cost of living pushing more vulnerable and everyday Aussies into poverty, homelessness and more.

The Salvation Army is a movement dedicated to walking alongside people experiencing hardship, crisis and injustice, and among the leading providers of specialist support services in Australia.
Learn more about the Red Shield Appeal

Whether it is immediate assistance to avoid eviction or establishing a new life after escaping violence, our wrap-around service model is tailored to meet the specific needs of people trying to rebuild and restart lives after crisis. And with over 140 years’ experience in supporting Australians in need, we understand it is more than a band-aid fix.

Your support of The Salvation Army Red Shield Appeal provides the necessary resources to enable us to continue meeting vulnerable people at their point of need and providing life-changing care those who seek the Salvos every day for assistance.

During the financial year 2021 – 2022, The Salvation Army:

Accommodation and housing services, financial assistance, food vouchers, case management, emergency relief, addiction recovery services, advocacy and referrals, or local corps and community offerings – your support of the appeal can ensure those in need get not just immediate help, but also long-term solutions.

Your contribution has the power to transform countless lives for the better, and ensure nobody struggles alone.
Find out how you can support the Red Shield Appeal

Suicide Prevention Australia quarterly Community Tracker, March Quarter 2023
https://povertyandinequality.acoss.org.au/wp-content/uploads/2022/10/Poverty-in-Australia-2020_A-snapshot.pdf
AustraliaNOW – February 23
4,5
bcec.edu.au/assets/2022/03/BCEC-Poverty-and-Disadvantage-Report-March-2022-FINAL-WEB.pdf

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The Salvation Army Australia acknowledges the Traditional Owners of the land on which we meet and work and pay our respect to Elders past, present and future.

We value and include people of all cultures, languages, abilities, sexual orientations, gender identities, gender expressions and intersex status. We are committed to providing programs that are fully inclusive. We are committed to the safety and wellbeing of people of all ages, particularly children.

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