Australia's Cost of Living Crisis Deepens as ACOSS Survey Exposes Hardship

ACOSS Survey Exposes Widespread Hardship Among Welfare Recipients

A new survey from the Australian Council of Social Service (ACOSS) has laid bare the severe impact of the cost of living crisis on the nation's most vulnerable, with 97 per cent of non-disability support recipients experiencing housing stress. The annual Raise the Rate survey, released on 13 September 2026, polled 1,560 individuals relying on JobSeeker and related payments, finding that three-quarters have cut back on fresh meat, fruit and vegetables, while 90 per cent report feeling socially isolated.

Key Findings

• Housing stress: 97 per cent of respondents are in housing stress, meaning they spend more than 30 per cent of their income on rent or mortgage.
• Food insecurity: 75 per cent have reduced consumption of fresh produce.
• Social isolation: 90 per cent feel isolated, with many unable to afford social activities.
• Financial buffer: Three-quarters do not have $500 for emergencies.

ACOSS CEO Cassandra Goldie said the findings illustrate the daily struggles of those on income support. “When someone says let’s go out for a coffee you don’t go because you can’t even afford to pay for your own,” she said. The survey also highlighted the plight of students and single parents, such as Brianna Cowie, a young mother studying to improve her family's prospects. “There are times when I’m worried I might have to drop out because I’m just not able to earn enough money to make ends meet,” Cowie told 9News.

Calls for Policy Action Intensify

Social service groups are urging the federal government to increase JobSeeker and Austudy payments to bring them closer to the pension rate, which stands at about $1,000 per fortnight. The proposed increase would cost approximately $5 billion annually. Independent MP Zali Steggall said many Australians “feel left behind by a system that is not supporting them”. Greens Senator Sarah Hanson-Young added, “The people on lowest incomes are the ones that are doing it the hardest.”

The Albanese government points to consecutive tax cuts and above-inflation increases in the minimum wage as evidence of its commitment to easing cost of living pressures. However, with the Reserve Bank weighing a rates decision, the survey underscores the persistent gap between policy measures and the reality for those on the lowest incomes.

Broader Context: A Nation Under Financial Strain

The ACOSS survey is the latest indication of a broader cost of living crisis affecting not only welfare recipients but also low- and middle-income households across Australia. Rising rents, soaring energy bills, and food inflation have eroded disposable incomes, pushing many to the brink. The Reserve Bank of Australia has been grappling with inflationary pressures, balancing rate hikes to curb spending without tipping the economy into recession.

This crisis is not isolated to Australia. In the United Kingdom, Prime Minister Andy Burnham has stated his focus on easing the cost-of-living crisis rather than engaging in constitutional debates, as Scotland, Northern Ireland, and Wales sign a historic memorandum of understanding to break away from the UK. The MoU, signed on 15 September 2026, commits the devolved nations to cooperation on economic and energy matters, with a consensus that their future lies in the European Union. While the UK's political turmoil differs from Australia's, the underlying economic anxiety is a common thread.

Political Implications and Public Sentiment

The survey's release comes amid growing public discontent. With unemployment rising, more Australians are relying on JobSeeker, intensifying the strain on an already stretched welfare system. The government's tax cuts and minimum wage adjustments have provided some relief, but critics argue they are insufficient for those outside the workforce or in precarious employment.

The ACOSS findings also highlight the social costs of poverty, including isolation and poor health outcomes. Goldie questioned the government's inaction: “Where is the Prime Minister and his government to say we will not put up with this level of destitution in one of the wealthiest countries in the world?”

What This Means for the Future

As the Reserve Bank deliberates on interest rates, the pressure on policymakers to address income support adequacy will only grow. The proposed $5 billion annual increase to JobSeeker and Austudy would be a significant fiscal commitment, but advocates argue it is necessary to prevent further hardship. The survey's stark statistics may also influence upcoming elections, with welfare groups mobilising to make cost of living a central issue.

Beyond Australia, the UK's cost of living crisis and its political ramifications—including the push for independence in Scotland, Wales, and Northern Ireland—demonstrate how economic distress can fuel broader demands for change. While the UK scenario is distinct, it underscores that cost of living crises are not just about economics; they can reshape political landscapes.

For now, Australians on income support continue to struggle, with the ACOSS survey serving as a stark reminder of the human toll. As Goldie put it, the level of destitution in a wealthy nation is unacceptable, and the calls for action are growing louder.