In the most recent data from the Organisation for Economic Co-operation and Development (OECD) (2021 or latest data), Australia had the 15th highest poverty rate of 36 OECD countries.
The OECD's estimate for the overall rate of poverty in Australia according to this graph is 12.6% (compared with our estimate for 2019-20 of 13.4%). This makes Australia's poverty rate the 15th highest among the 38 OECD countries.
On average in 2019-20, one in eight people (including one in six children) lived below the poverty line. The poverty line based on 50% of median household income ranged from $489 per week for a single person to $1,027 per week for a couple with two children.
Causes of poverty and inequality in Australia. A combination of factors contribute to poverty – a lack of money or resources for the basic needs of life – and inequality – unequal distribution of income and wealth.
Australia is considered a wealthy nation with a market-based economy that has a comparatively high gross domestic product and per capita income. Its economy is driven by the service sector and the export of commodities. [Explore the top universities in Australia.]
Five causes of poverty
Poverty is not just caused by individual circumstances but by major inequalities built into the structure of Australian society. Some of the main causes of this inequality and poverty are access to work and income, education, housing, health and services.
For other likely contenders for the undesirable title of the world's poorest country—Afghanistan, Syria and Yemen—years of ongoing conflict make it impossible to even attempt an assessment due to the lack of reliable economic figures.
Poverty in Haiti is regarded as among the most severe in the Western hemisphere.
The Organisation for Economic Cooperation and Development (OECD) defines the poverty line as half the median household income of the total population2. In Australia this translates to a single adult living on less than $426.30 a week. For a couple with 2 children, it was $895.22 a week1.
The average yearly salary in Australia is 90,800 AUD (USD 60,355). Let's go through a few key indicators of the average earnings in Australia so you can fully understand salary statistics and trends in the country.
The 10 most disadvantaged LGAs in order are: Woorabinda (Queensland), Cherbourg (Qld), Belyuen (NT), West Daly (NT), Yarrabah (Qld), Kowanyama (Qld), Wujal Wujal (Qld), East Arnhem (NT), Doomadgee (Qld) and Central Desert (NT).
1. Nearly three million Australians live in poverty. Alarmingly, over 3.3 million Australians are living in poverty, facing significant disadvantages and challenges in their day-to-day lives2.
Australians collected a higher median wealth per adult than anywhere else in the world at $US273,900 ($A390,870) – nearly three times the median wealth of $US93,270 ($A133,100) in the US. Australia was followed on the rich list by Belgium and New Zealand, with the US trailing behind at number 18.
122,494 people were estimated to be experiencing homelessness at the time of the 2021 Census, an increase of 6,067 people (5.2%) since 2016. The rate of homelessness decreased to 48 people per 10,000, from 50 in 2016. Of those experiencing homelessness in 2021: 68,516 (55.9%) were male, an increase of 1.6% from 2016.
Richer countries are almost all located in the Northern Hemisphere, with the exception of Australia and New Zealand. Poorer countries are mostly located in tropical regions and in the Southern Hemisphere.
Iceland stands at the top of countries with the lowest poverty rates with a poverty rate of 4.9% in 2021.
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“By 2050, for example, more than 40 percent of the extremely poor people in the world will live in just two countries: Democratic Republic of the Congo and Nigeria. Even within these countries, poverty is concentrated in certain areas,” says the report.
Poverty was highest among younger and older people in 2019-20, but COVID income supports did much to reduce it among children and young people. The average rate of poverty in 2019-20 was 17% among children, 14% among young people 15-24 years of age, 12% among people aged 25-64 years, and 14% among older people.
Increase wages – especially the minimum wage, to reduce inequality and leaving low-income earners behind. Rebuild employment services, to truly help disadvantaged job seekers, especially those who are long-term unemployed to find work.
Australia's Gini has increased seven percentage points over the past 40 years, the report observed. “On this measure, inequality levels are as high as they have been since 1950, in the aftermath of World War II,” the report notes.