Child poverty in Australia is on the rise, and it’s more concerning than ever. New data shows that nearly a million Australian children are expected to live in poverty by 2025, a stark increase from just a few years ago. With rising costs of living and the pressures on families increasing, many kids are paying the price for economic struggles they didn’t cause.
A Startling Statistic
According to a report from the Bankwest Curtin Economics Centre, almost 950,000 children in Australia will be living in poverty by 2025. That’s more than 15% of all kids in the country. The number has jumped significantly from 713,000 just four years ago, and it’s a trend that shows no signs of slowing. For context, child poverty is defined as living in a household with less than half the national median income, which, for the 2022-23 financial year, was $58,216.
It’s a worrying statistic that not only reflects the growing wealth gap in the country but also highlights how financial strain is affecting the future of an entire generation.
How Rising Costs Are Affecting Australian Children
One of the biggest factors contributing to this rise in child poverty is the skyrocketing cost of living, especially housing. Rent prices in major cities have surged, with places like Sydney, Melbourne, and Brisbane seeing rent hikes of up to 40% in just two years. Families like Faiq Alyasare’s, a father of four in Perth, are struggling to keep up. Alyasare, who works long hours as a fly-in fly-out worker, has seen his rent rise from $500 a week to $800 in just two years.
Despite working harder and cutting back on essentials, he finds himself unable to afford basic extras like soccer for his kids. “It’s tough when the kids are always asking for things,” he says to SBS. “But you just can’t afford it anymore.” It’s a sentiment many families share across Australia as they face increasing costs without corresponding increases in income.
The Long-Term Consequences
The impacts of child poverty are more than just financial. They’re emotional, social, and educational. Experts like Professor Alan Duncan from Curtin University argue that poverty “gets under the skin” of children. Missing out on things like sports, school excursions, and even after-school programs doesn’t just leave a kid disappointed—it can make them feel disconnected from their peers. For some, it can mean losing out on opportunities to develop skills and interests that could shape their futures.
For Alyasare’s children, it’s not just about missing out on a soccer team; it’s about a future that could feel less bright because of the financial hurdles they face now. His son, who loves soccer, might never reach his potential because his parents can’t afford the training he needs to excel. “Maybe he’s talented, but who knows if he doesn’t get that push?” Alyasare worries.
A Call for Action
This growing problem isn’t just about one family or one group of children—it’s a societal issue. The End Child Poverty campaign is calling for a “child-centred” definition of poverty and stronger measurements of how poverty affects children’s wellbeing. Campaign lead Sarah Quinton argues that poverty isolates children at a time when they should be building relationships and learning crucial social skills.
Without action to fix the structural causes of housing unaffordability and inadequate income support, Australia risks seeing over a million children living in poverty. For now, many families, like Alyasare’s, are struggling to keep their heads above water, hoping for a future where their children don’t have to face the same battles. While the Australian government has allocated billions to social security in recent years, advocates argue that more must be done to help families break free from the cycle of poverty.
