Adopt an Official National Poverty Line

Lead Authors: Anya Jarosz and Christopher Noonan | Publish date: 9 Sep 2024 

Problem Identification: 

The Australian Government currently has no official definition of the poverty line. 

According to The Australia Institute, ‘The Australian Government has no official definition of poverty and does not officially track or publish updates on the prevalence of poverty’.

This means that there is no clear, consistent benchmark for measuring poverty across the country. This could lead to inconsistencies in how poverty is understood by different agencies and stakeholders and may make it harder to ascertain the extent of poverty, track changes over time, or target policies and resources effectively.

Context: 

The Australia Institute, among others,  has noted that the Australian Government does not currently track or publish official poverty statistics and does not have an official definition of poverty. 

Poverty statistics in Australia are primarily recorded by non-government bodies such as the partnership between the Australian Council of Social Service (ACOSS) and the University of New South Wales (UNSW). In their 2022 study (using a poverty line of 50% of the national median income), they found that 1 in 8 adults and 1 in 6 children in Australia are living in poverty. 

In 2015, Australia endorsed the UN’s sustainable development goals, which commits each country to reduce ‘at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions’. However, Australia’s ability to fulfill this commitment may be compromised as Australia does not have an official definition of poverty. 

The Australia Institute, Peter Davidson (the principal advisor to the Australian Council of Social Services),  End Child Poverty, and the Brotherhood of St. Laurence recommend adopting an official poverty line definition. They say this could facilitate research on poverty and could therefore allow for meaningful investment in, and effective tracking of, anti-poverty initiatives. Further, a recent study highlighted that 83% of Australians support an official poverty line definition. 

The Australia Institute recommends that Australia adopt a relative income-based poverty line of 50% of the median income rate. They highlight that a relative definition such as this could have the benefit of helping to track social marginalisation and other harms that result from inequality, which could be missed by an absolute definition. 

There is significant international and national precedent for using this definition of poverty. This definition is already used by other wealthy countries alongside the Organisation for Economic Co-Operation and Development (OECD) and nationally by ACOSS and UNSW. 

Solution Identification: 

Introduce a relative income-based poverty line that is 50% of the median income rate. 

This could help the government monitor rates of poverty and assess the impact of anti-poverty strategies. 

Advice: 

The Minister for Social Services should adopt a relative income-based poverty line that is 50% of the median income rate at the next opportunity.

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Public Support: 

1. The Australia Institute: https://apo.org.au/sites/default/files/resource-files/2024-06/apo-nid327363.pdf

Where to go to learn more: 

1. The Australia Institute, Ending Child Poverty in Australia: https://apo.org.au/sites/default/files/resource-files/2024-06/apo-nid327363.pdf 

2. Australian Council of Social Services: https://povertyandinequality.acoss.org.au/faq/#poverty-definitions 

Conflict of interest/acknowledgment statement: 

N/a.

Support 

If your organisation would like to add your support to this paper, or suggest amendments, please email Info@foreaustralia.com. 

Reference list: 

Australian Council Of Social Services. (n.d.). ACOSS – Australian Council of Social Service. https://www.acoss.org.au/

End Child Poverty. (2024, June 28). Majority of Australians Back Action to Track and Address Child Poverty [media release].

https://www.endchildpoverty.com.au/aussiestrackaddresschildpoverty/australiainstitute

Barnott-Clement, D. (2024, June 27). Majority of Australians Back Action to Track and Address Child Poverty. The Australia Institute. https://australiainstitute.org.au/post/majority-of-australians-back-action-to-track-and-address-child-poverty/

Davidson, P; Bradbury, B; and Wong, M. (2022). Poverty in Australia 2022: A snapshot. Australian Council of Social Service (ACOSS) and UNSW Sydney. https://povertyandinequality.acoss.org.au/a-snapshot-of-poverty-in-australia-2022/

Hutchens, G. (2022, October 19). Why are millions of Australians still living in poverty? Experts say it’s solvable. ABC News. https://www.abc.net.au/news/2022-10-20/why-are-millions-of-australians-still-living-in-poverty/101553340

OECD (n.d.). Poverty rate. https://www.oecd.org/en/data/indicators/poverty-rate.html University of Melbourne. (2024, August 2). Researchers and advocates set to track the true extent of poverty. https://arts.unimelb.edu.au/news/researchers-and-advocates-set-to-track-the-true-extent-of-poverty

Scicluna, K., Thrower, J. (2024). Ending child poverty in Australia. The Australia Institute. https://australiainstitute.org.au/wp-content/uploads/2024/06/P1523-Ending-child-poverty-in-Australia-Web-2.pdf

United Nations. (2015). United Nations Sustainable Development Goals. United Nations. https://www.un.org/sustainabledevelopment/