Two million Aussies in poverty, report finds

August 30, 2007 01:29am
From: www.news.com.au

* Almost one in 10 Aussies below poverty line
* Only Ireland spends less on education
* Retirees hit hardest by living cost rise

EVEN though the economy is booming, almost two million Australians, or 10 per cent, are living in poverty, a report has found.

The Australia Fair campaign, which was established by the Australian Council of Social Service (ACOSS), today released a report comparing Australia to the rest of the developed world in 10 key areas.

The areas are community, education, environment, health, housing, reconciliation, rights, services, welfare and work.

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The report came as new figures from the Australian Bureau of Statistics showed that costs for working families and pensioners were rising faster than inflation.

The figures showed wage-earning households pay 18 per cent more for the same goods and services as they did five years ago.

Pensioners are paying 15.8 per cent more, according to the Bureau.

Australia's home ownership rate was 70 per cent but housing affordability was worse than any other developed English-speaking country, the report found.

Using an international measure that defines the poverty line as 50 per cent of median income, the Australia Fair campaign found the number of Australians living in poverty rose from 7.6 per cent to 9.9 per cent of the population between 1994 and 2004.

Poverty levels were even higher when calculated with the line used in the UK and Ireland.

One in five by UK measures

Under this measure - 60 per cent of median income - the poverty rate in Australia was found to be 19.8 per cent in 2004.

Using the more complex UN Human Poverty Index, Australia ranked 14th in the developed world, behind countries such as Japan and Canada, but ahead of the UK, US and Ireland.

ACOSS president Lin Hatfield Dobbs said governments needed to do more to ensure the benefits of economic prosperity were shared throughout the Australian community.

“There are too many areas where Australia is falling behind other OECD nations,” she said.

“Governments need to ensure the benefits of the economic prosperity are shared with all Australians.”

Education spending among lowest

The report also found Australian spent less on education as a proportion of GDP than all other developed English-speaking countries except Ireland.

Australia had the sixth highest rate of expenditure in health in the developed world but 40 per cent of Australians were unable to access dental care when they needed, the report said.