Living Cost Crisis Causes More Australians to Plunge into Extreme Poverty: Report

Living Cost Crisis Causes More Australians to Plunge into Extreme Poverty: Report
People walk past a man lying on the ground in front of a store begging for money in Sydney, Australia, on July 10, 2017. (William West/AFP via Getty Images)
Alfred Bui
5/17/2023
Updated:
5/17/2023

A charity organisation has found that tens of thousands of Australians are experiencing food insecurity and cannot afford basic items amid high living cost pressures.

According to new research by the Australian branch of the Salvation Army, which studied 1,700 people using the charity’s services in the past 12 months, 93 percent of the respondents lacked money to pay for daily necessities.

Specifically, it found that after paying for housing, food, utilities, health, and fuel, a typical respondent was left with less than $6 (US$4) a day to cover other expenses.

In addition, half of the people surveyed could not afford essential healthcare services, 52 percent had to skip meals, and three in four were under housing stress.

“Everyone is doing it tough at the moment, but for those who were already struggling, the cost-of-living crisis is making it almost impossible for them to survive,” Stuart Glover, the Salvation Army secretary for mission, said in a statement.

“We have seen a significant increase in everyday Australians who have fallen through the cracks over the last year.”

The secretary also noted that many people seeking help from the Salvation Army during the period used to volunteer or donate money and time to help the charity.

Households with Children Suffer the Most

At the same time, the survey found that the most vulnerable victim of the living cost crisis was households with children.

Around 75 percent of these households lived under the poverty line, while 25 percent said they could not afford healthcare and dental services for their children. Another 20 percent could not provide three meals a day for their kids.

One respondent said she had lost 40 kilograms in the last nine months as she spent all her income on “keeping a roof” over her kids’ heads and could not afford food expenses.

Meanwhile, another 29-year-old mother told the Salvation Army that she had to sell her belongings to pay for her children’s basic needs.

“I eat the leftover food from my children’s meals, if there is any, or I just don’t eat,” she said.

“I wait at the school car park from drop-off until pick-up if I’m short on fuel. I have sold most of my own clothing to buy my children clothes.”

A mother hugs and says goodbye to her daughter at her school gates in Sydney, Australia, on Feb. 20, 2023. (Lisa Maree Williams/Getty Images)
A mother hugs and says goodbye to her daughter at her school gates in Sydney, Australia, on Feb. 20, 2023. (Lisa Maree Williams/Getty Images)

Amid the cost of living crisis, the Salvation Army called on Australians to donate to help their struggling mates.

“The need is greater than ever before. With your support, The Salvation Army will help thousands of people to get back on their feet this year and give them hope for a better future,” Glover said.

This year, the charity hopes to raise $37 million via its Red Shield Appeal program to fund over 2,000 services across Australia.

The Epoch Times has reached out to the Salvation Army for comment but has yet to receive a reply in time for publication.

New Tax on Australian Farmers

The Salvation Army’s research comes as the Australian government has proposed a new biosecurity tax on farmers in the 2023-2024 budget.

Under the proposal, all domestic agricultural, fisheries, and forestry producers would have to pay a 10 percent levy to fund a new biosecurity system.

The new tax will result in beef farmers paying an extra 50 cents per head of cattle, and egg farmers would have to pay an additional 3.25 cents per bird.

Similarly, domestic apple producers will incur 19 cents of extra cost per kilogram of apples.

Following the budget’s release, the National Farmers’ Federation (NFF) criticised the government for allegedly doing nothing to address food price inflation while adding more burden to farmers.

“Right along the supply chain, the businesses which grow, process, and transport our food and fibre are under immense pressure,” NFF president Fiona Simson said.

“Whether it’s workforce shortages, damaged roads, or the cost of capital upgrades—there are issues that need urgent attention if we want to achieve price relief for consumers,” she said.

“Sadly, tonight’s budget fails to act on these in any meaningful way.”

Meanwhile, the National Party leader David Littleproud believed the new farmer tax would cause more Australians to go hungry.

“Labor’s new tax on farmers, right in the middle of a cost-of-living crisis, will harm the agriculture industry and increase the cost of food for everyone,” he told The Epoch Times.

“It defies logic that the federal government would tax Australian farmers to pay for the biosecurity costs of its international competitors to import their products here.”

Victoria Kelly-Clark contributed to this article.
Alfred Bui is an Australian reporter based in Melbourne and focuses on local and business news. He is a former small business owner and has two master’s degrees in business and business law. Contact him at [email protected].
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