By Ben Gales (PRF Chief Impact Officer) and Josie Khalil (PRF Head of Systems Change)
Poverty isn’t a statistic; it’s a lived reality for millions. Poverty in Australia today affects one in seven individuals and one in six children – that’s 14.4% of the population. Poverty is intergenerational – children who experience poverty are at increased risk of poverty as adults. For one of the wealthiest nations in the world, our tolerance for poverty is too high.
The experience of poverty is wrapped up in stigma, systems that are complex to navigate, and outdated and harmful narratives that hamper action. What if we flipped the script and started building systems that worked with people rather than against them? That's what the Economic Inclusion Advisory Committee (EIAC) is being called to consider as it prepares its next pre-Budget report to the Government. Paul Ramsay Foundation was invited to share insights from our philanthropic work in service of stopping intergenerational disadvantage for people and places in Australia. In this blog, we share our key insights and the Submission we provided to the EIAC.
At the heart of the matter, two overarching things are front and centre:
- First, to tackle entrenched poverty effectively, we need to stop talking about people and start listening to them. That means including people with direct and contemporary experience of poverty in the conversation. After all, who knows better than those experiencing and navigating these challenges every day? This was one of our key recommendations to the EIAC.
- Second, the narratives around poverty in our society are broken. Words like "welfare recipient" and “dole bludger” come loaded with judgment, fuelling a cycle of shame and blame. This stigma doesn’t just hurt feelings – it blocks people from accessing the help they need. Worse, it dampens political will to bring real change. It’s time to reframe poverty for what it is: a structural issue from the choices we make as a society, not a personal failing. We need to take a hard look at our high tolerance for poverty in Australia; it is far cry from the ‘fair go’ country we like to think we are.
Six ways to make change happen – we highlighted six areas for action.
- Measure poverty, in all its manifestations. We need a national multidimensional poverty measure, alongside an income poverty measure. Why? Because while money matters a lot, poverty isn’t just about money; it’s about barriers to opportunities, lack of social connections, financial stress and associated cognitive load and lack of access to basics – in Sharon Bessell’s words – it is material, relational and opportunity deprivation. Think of it as mapping the problem in 3D rather than 2D.
- Simplify the system. Navigating the current support system feels like running an obstacle course blindfolded. A simpler, more accessible system should catch people before they fall into deeper precarity, and do so in a way that preserves dignity, agency and trust.
- Fix the income problem. The low level of income support isn’t just low – it’s harmful. The research clearly shows us that when people spend all their mental energy juggling bills and surviving day to day, they’re left with little bandwidth for anything else. We need to both increase household income; and directly decrease expenditure by addressing the market failures resulting in people on low incomes paying a ‘poverty premium’ for daily essentials, like insurance, energy, and groceries, because they can’t buy in bulk, or pay upfront.
- Socio-economic diversity (‘bridging capital’) is essential. Concentrated disadvantage in certain areas—be it social housing or schools or communities – further entrenches deprivation for the long term. Data from the US context shows communities with socio-economic interactions have higher rates of upward mobility. Socioeconomic diversity should be a goal, not an afterthought, especially when redesigning systems like early childhood education.
- Transparency on what works and what doesn’t. If taxpayer money is funding poverty solutions, the results shouldn’t be hidden in a black box. We need to share what works and, just as importantly, what doesn’t. We need collective learning, not secret recipes, if we are to move the dial.
- Watch the horizon. Mega trends like AI, climate change, and an aging population are reshaping our world. The most vulnerable groups are often hit hardest. How do we make sure they disproportionately benefit from the opportunities these bring —and not be further left behind?
The big picture: Thriving, not just surviving
Addressing poverty isn’t just about survival—it’s about tackling the many dimensions that can negatively impact a person’s life, and creating opportunities, so prosperity is inclusive and shared by all. All children deserve to have a shot at a brighter future, and parents should be able to access what they need to meet their family’s basic needs without drowning in stress. This requires changing systems, challenging outdated narratives, and working together.
The solutions are out there. The question is, do we have the social and political will to end entrenched poverty in Australia, so we can all get a ‘fair go’?
Note: We thank our partners, whose insights contributed to our Submission, and who work tirelessly with, and provide direct support or services to, the people we are here to serve. Our contribution must not substitute for drawing on the insights and experiences from people who experience poverty and disadvantage.
