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Poverty in Australia Essay

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Poverty in Australia Before discussing the extent of poverty in Australia, it is first crucial to mention the difference between absolute poverty and relative poverty. Absolute Poverty is a situation where deprivation is extreme because people do not have access to the basic necessities such as food, clothing, and shelter. In contrast Relative Poverty is a situation in which the incidence of poverty is measured relative to things such as average weekly earnings or income per head. Therefore poverty, as talked about in Australia is the state where income is insufficient to meet the minimum needs of the household or individual.

The Poverty Line is the level of income below which the income of the household or individual is …show more content…

Whilst these percentages had changed significantly it was also found that the types of people who were living under the poverty line were still the same. In this report it was found that 75 percent of those living below the poverty line were not in the workforce, and that the aged made up 41 per cent of all Australians that were living in poverty. (Williams, Lawrey 2000) Therefore it is clear that although the poverty line had risen significantly from 1975 to 1987, there has not been an improvement in the percentage of Australians living under the poverty line, but instead this percentage has increased.
Between 1975 and 1996, per person, GDP grew by almost 90%, taxes more than doubled, government transfers went up more than 160%, and average household income net of taxes grew by almost 50%. Income grew significantly. The proportion of national income directed via government grew far more significantly. Although there has been some problems with the economy during this period such as unemployment which has grown from 4 per cent to 8.5 percent, also the average duration of unemployment grew from 6 weeks to 52 weeks.

Unemployment is seen as one of the possible reasons for the increase in poverty rates, despite the increase in welfare payments. Whilst it is likely that this startling increase in unemployment levels is partly responsible for the increase in poverty, it still

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