What is the Poverty Level in Australia.
The main poverty measure, as used by international definition, and by Australia, is the number of people living below a poverty line defined at 50% of median household income.
An Australian couple with two children, with an income under $47,254 per year is classed as being in Poverty.
Poverty Level in Australia 2018.
In the 2018 Poverty in Australia report, 3.05 million people in Australia, (13.2% of the population), were living below the poverty level, after taking account of their housing costs.
To be considered ‘below the poverty level’, their incomes must be less than:
$432.73 per week: Single person. ($22,502 per year)
$649.10 per week: Couple with no children. ($33,753 per year)
$908.74 per week: Couple with 2 children. ($47,254 per year)
Details from the 2018 Poverty in Australia report [PDF] released on Tuesday 16 October 2018, showed:
The poverty line (50% of median income, before housing costs) for a single adult is $433 a week.
For a couple with two children, it is $909 a week.
3.05 million people (13.2% of the population – more than one in eight – are estimated to live below the poverty line, after taking account of their housing costs
64% of those on Youth Allowance are under the Poverty Line.
55% of those receiving Newstart Allowance are under the Poverty Line.
52% of those on a Parenting Payment are under the Poverty Line.
36% of those on the Disability Support Pension are under the Poverty Line.
17% of those on a Carer Payment are under the Poverty Line.
12% of those on the Age Pension are under the Poverty Line.
52% of people below the poverty line were in rental housing
15% of people in poverty were home-owners without a mortgage.
How to Reduce Poverty.
Poverty in Australia could be reduced, by reducing the number of higher paid people in Australia.
That makes no sense to many, but here is how could work:
Assume 13 people, with weekly incomes of: $350, $390, $433, $606, $693, $779, $866, $953, $1,048, $1,153, $1,268, $1,395 and $1,534.
The median income is $866 per week.
The Poverty Line is $433 per week, half the median.
THREE of the THIRTEEN above (23%) are at or under the Poverty Line, with incomes of: $350, $390 and $433.
Now, remove two of the top earners, leaving 11 people, with incomes of: $350, $390, $433, $606, $693, $779, $866, $953, $1,048, $1,153 and $1,268.
The median income is now only $779 per week
The Poverty Line becomes $389.50 per week, half the median.
Only ONE of the above (9%) is now at or under the Poverty Line, with an income of $350.
Get rid of the next two higher earners, $1,153 and $1,268, and Poverty is eliminated, with everyone now earning over $346.50, ie: 50% of the new median wage of $693.
There are more options of course, with the most popular one being to increase the income of the lower paid. I would prefer that too, being one of those under the current poverty line.
Poverty Level in Australia 2016.
In the 2016 Poverty in Australia report, 2.99 million people in Australia (13.3% of the population), were living below the poverty level, after taking account of their housing costs.
To be considered ‘below the poverty level’, their incomes must be less than:
$895.22 per week: Couple with 2 children. ($46,551 per year)
$426.30 per week: Lone person. ($22,167 per year)
Some Statistics:
55% of those receiving Newstart Allowance (Unemployed) were below the poverty level.
51.5% receiving Parenting Payment were below the poverty level.
36.2% of those receiving Disability Support Pension were below the poverty level.
13.9% of those on the Age Pension were below the poverty level.
Source: www.acoss.org.au/poverty