Western Australians on low income continue to face severe financial stress, struggling to afford even life’s essentials. Slowing inflation and modest wage growth have not solved these challenges. Analysis reveals that debt and deficit are worsening in WA, affecting a growing number of households across the state – despite marginal improvements for the model household this past year.
Over the past year:
- The model Single Parent Family fell short by a staggering $90.06 each week.
- After plunging into deficit for the first time last year, the Two Parent Family is still unable to cover even the basics – with weekly costs outstripping income by $16.59.
- Since the COVID supplement was withdrawn, the Unemployed Single has remained in an extremely fragile financial position, with only $8.53 left over each week after covering basic costs.
- The financial position of the Age Pensioners (Renters) deteriorated further. They fell $69.50 short each week. The Age Pensioners (Homeowners) had $57.82 left over each week.
While inflation moderated in some areas in 2024/25, essential costs remain historically high, and several key expenses continue to climb. Years of relentless cost growth have already eroded household savings and pushed many into debt, leaving little buffer for new shocks. Rents continue to rise well above inflation, consuming an increasingly unsustainable share of household income and leaving families with little for other essentials. Temporary electricity credits that offered short-term relief are set to expire, driving energy bills higher. These persistent pressures, layered on years of financial strain, are deepening hardship for those already struggling to survive and pushing even more people into insecurity. Employment alone is no longer a safeguard against financial insecurity. For children growing up in these circumstances, the long-term consequences of poverty – including poorer health, education outcomes and life trajectories – are well documented and deeply concerning.
The phrase ‘cost of living’ has become commonplace, but its meaning deserves reflection. WACOSS’ Cost of Living reports measure the cost of essential goods and services required for a basic standard of living. This modelling accounts for only minimal replacement of essentials like clothing and cookware. It does not allow for savings or financial buffer to cover crises, unexpected costs or discretionary spending. It represents the cost of survival. It is unacceptable that so many in our community find every aspect of life – from housing to energy to food and transport – too expensive to manage. That the cost of survival drives families into debt and homelessness.
While there have been pockets of reform and investment, they fall short of what is needed. This has been a choice by Government (both State and Federal) – a choice WACOSS refuses to accept. To eliminate poverty and ensure all West Australians have an adequate standard of living, targeted investment and structural reform are urgently needed.
The last five years have shone a light on the failings of our systems and the devastating impact of failure to address the root causes of poverty and hardship. Governments must act now. Without decisive action, more families will be pushed into hardship, support services will remain overwhelmed, and the cycle of disadvantage will deepen.