A recent national survey has exposed a significant issue facing families in Australia, revealing that nearly one in three single parent households live in poverty. The Household, Income and Labour Dynamics in Australia (HILDA) survey, released in 2023, indicates that after accounting for housing costs, 31.3% of single parent families fall below the poverty line.
The report highlights a stark contrast between single parent households and their two-parent counterparts. The data shows that single parent families are almost three times more likely to experience poverty. While this figure marks a decrease from a record high in 2022, it remains considerably above the 25% rate recorded a decade ago and higher than the 28.3% rate from 2003.
Long-term Trends and Policy Failures
According to Roger Wilkins, co-director of the Melbourne Institute of Applied Economic and Social Research, the historical data from the HILDA survey points to a troubling trend over the past 10 to 15 years. He attributes this decline in economic stability to policy changes made during the administrations of former Prime Ministers John Howard and Julia Gillard, which pushed many single parents—primarily mothers—off parenting payments and onto less supportive unemployment benefits.
Wilkins explained that a household is considered to be in poverty if its income, after taxes and housing costs, is below half that of a median-income household. He emphasized the relative nature of this poverty measure. “If average living standards rise, so does the poverty line,” he noted. “But average living standards haven’t been rising in recent years, so we can’t really claim that as a defense on why we are not making progress.”
Wilkins expressed concern about the lack of public attention on the issue, stating that the rising poverty rates among single parent households represent a “silent crisis” in the community. He remarked, “It’s translating to real suffering experienced by a lot of people,” and emphasized the potential long-term disadvantages for children in these households.
Impact on Children and Government Response
The survey also highlighted the impact of this issue on children, revealing that 34.7% of children living in single parent households are currently in poverty. In response to these alarming figures, the Albanese government announced a policy change effective from September 2023. Single parents will now have the option to remain on the more generous parenting payment until their children reach the age of 14, an increase from the previous limit of eight years. Additionally, enhancements to rental assistance payments have been introduced to help alleviate financial pressures faced by single parents.
Despite these measures, Wilkins argues that there is still considerable work to be done to address the needs of the most disadvantaged families. He pointed out a critical gap in Australia’s approach to measuring poverty, stating, “We don’t even have an official poverty measure – we won’t even adopt a standard by which we can hold the government to account.” He noted that many other countries have established official poverty standards, raising questions about Australia’s self-image as an egalitarian society.
As the survey findings circulate, they underscore the urgent need for continued attention and policy reform to support vulnerable single parent households in Australia. The ongoing struggle for economic stability among these families poses significant social implications that warrant immediate action from both the public and policymakers.
