Exploring Poverty: Social Issues and Policy Responses in Australia

This essay provides a comprehensive analysis of poverty in Australia, addressing its measurement, the groups most affected, and the public policy responses implemented to combat it. It begins by defining relative poverty and highlighting the contentious political debates surrounding its measurement. The essay explores various methods of estimating poverty, including the concept of 'low economic resource families' and the 'consistent poverty approach.' It examines the poverty gap, revealing the depth of economic shortage experienced by those below the poverty line. The discussion extends to the historical context of inequality and poverty, particularly concerning Indigenous populations, and evaluates the effectiveness of social security policies. The essay further investigates the impact of geographical location on poverty, noting the increasing disadvantage in outer suburban regions. Finally, it critiques past governmental efforts and emphasizes the need for a more holistic approach to address poverty and promote social inclusion.

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Introduction
Poverty is a relative concept used in order to explain individuals in the society who are
incompetent of affording the essential amenities for daily-continued existence. The issue of
relative poverty in Australia as well as its measurement are considered contentious political
problems. However, many positioned on the left wing of Australian politics have argued that
relative poverty is supposed to be effectual measure. Reports revealed that considering
accommodation expenses there has been estimated around 12.5% to live in households, which
are below the most austere poverty line. According to Martinez and Perales (2017), in Australia,
the term ‘poverty’ refers to the living in relative poverty that is population whose standards of
living tend to fall below an overall community standard. People living in poverty line not only
have reduced levels of income but also tend to lose significant avenues as well as resources
which financially affluent ones take for granted for example adequate health, educational
services, employment opportunities and proper housing and accommodation. There can be
studied number of ways to estimate relative poverty leading to various levels of poverty. Website
of Acoss.org (2019) cite examples of Smith Family and National Centre for Social and
Economic Modelling (NATSEM) report in the year 2000 reported that at least 1 in 8 Australians
are experiencing financial shortage. However, relative poverty line tends to rise with the upsurge
of income level of population as a whole. On the other hand, fixed poverty line tends to increase
in accordance to inflation. Meanwhile, Doyle, Mendes and Duffy (2015) have noted that poverty
tends to persist in Australia in spite of the existence of welfare system. The aim of the essay is to
analyse policy as social issue and ways in which it is measured. In addition to this, the paper
seeks to focus on groups, which show higher propensity to live in poverty and significant overlap

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between these groups. Most importantly, the paper will analyse Australian public policy
responses to poverty.
Discussion
Understanding the Issue of Poverty in Australia
The Australian Bureau of Statistics (ABS) has presented idea of ‘low economic resource
families’ referring population with low wages and little monetary benefits. Such a measure tends
to overcome the social problems of counting in the total of poverty for those who have low wage,
while comprise of relative high wealth such as having proper accommodation amenities. Cheers
(2019) has conducted important exploration on relative lack of economy in Australia during the
early 1990s and essentially deliberated ways and extent to which poverty pose impact on social
integration and capacity of people in order to live accomplished life rather than experiencing
stigmatisation. Drawing relevance to the research, they have contended on the usage of poverty
lines signifying that the deliberation regarding poverty dimension is typically a disruption and
operates in order to complex the significance of principled opinions regarding proper living and
enjoying adequate amenities. Meanwhile, Hérault and Jenkins (2019) have argued that poverty
lines tend to be severely rudimentary and uninformed specifically in relation to the capacity of
shaping policy. Furthermore, they have reasoned the application of ‘consistent poverty approach’
which cartels vital dealings of low returns with extra measures of financial deficiency.
Another critical measure of poverty is distinguished as poverty gap. In the view of
Saunders, Wong and Bradbury (2016), this evaluates the regular depth of economic shortage for
the ones who observe themselves to be below the poverty line. This averages $135 per week
further pointing out that number of Australians is under the poverty line. Moreover, from global
viewpoint, Australia has attained position in the topmost half of the Organisation for Economic

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Co-operation and Development (OECD) nations with poverty rate 14th beyond 36 OECD
nations. Studies reveal that major proportion of people in Australia estimated around 53% are
below the poverty line and tend to depend on social security as their primary source of earnings.
Doyle, Mendes and Duffy (2015) claim that social security policies undoubtedly pose severe
impacts on poverty constructively or unconstructively. Since substantial earnings support
payments tend to be below the poverty line, thus to evade monetary insufficiency Australians
require to appendage their social safety costs with private earnings or strategize to improve
social security system as a whole. Reports mention that the overall poverty rate in recent times
has been fluctuating within a band estimated between 11.5% and 14.4% in the period of 1999-00
and 2015-16. Moreover, poverty in Australia declined at a significant rate from 13.1% in 1999 to
11.5% in 2003. However, it upsurged substantially during the financial flourishing years to
almost 14.4% prior to the Global Financial Crisis (GFC). Although, in 2007 the poverty line
dropped down to 12.6% during 2009 reaching approximately it increased up to 12.8% in 2015-
2016.
Drawing insights from the rates Cheers (2019) has asserted that financial conditions and
social security fluctuates which includes major upsurge in the single pension rate in 2009, that
has been considered as major drivers of poverty in Australia. Reports mention that in 2013,
considering accommodation expenses, around 12.8% of Australians have been living lower than
the poverty line. Furthermore, in 2014, around 18% of children below 15 years lived in families
with no income. Such a rate of poverty is estimated to be significantly higher in comparison to
the OECD nations with around 10.7%, leading Australia to occupy the fourth highest nation in
the OECD with children included in unemployed households. In addition to this, there can be
studied around 65% of single parent families who have been distinguished as low economic

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resources. Meanwhile, individuals aged between 15-19 years exhibit three times higher
propensity to experience job redundancy in comparison to other Australians that is around 28%
(Ferrarini, Nelson & Palme, 2016). Furthermore, comprehensive studies mention that women in
Australia show higher propensity to fall in the poverty line in comparison to men. Reports have
estimated that around 18.5% of women have been falling under the poverty line in comparison to
around 15.7% of men. Drawing relevance to these data, Brian (2015) has claimed that single
parent major proportion are women tend to get severely affected by poverty. Watts and
Fitzpatrick (2018) have further mentioned that in 2009 single mothers with children reliant on
them characterized around 17% of all individuals aged 15 years or above have been living in low
economic resource households. While, on the other hand, single mothers have represented
around 3% of the poverty line. Reports mentioned that the situation of poverty line in Australia
witnessed severe deterioration in 2013 with transferal of approximately 100,000 lone parents
from the Parenting Payment assistance to the lower salaried Newstart Allowance. At this
juncture, Brady and Bostic, A. (2015) posit that poverty research has paid insignificant amount
of attention in order to influence policy as well as policy responses to poverty investigation in
order to refute the presence of poverty. Additionally it oppose that the measurement doubts
create estimations of poverty subjective and consequently of very insignificant amount of use for
policy. Sowell (2016) further note that the policy attention in Australia has been on enhancing
revenue by means of employment establishment that is along with least earnings as well as on
the establishment of social safety welfares for those incapable to work.
Contextualising poverty socially and historically
There is historic relation of inequality and poverty in Australia considering Indigenous
population to be highly susceptible to financial deprivation. Consequently, the Aboriginals have

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been still rebounding from period of marginalization and subjugation. Moreover, number of
White Australians developed negative feelings due to the reduction of social welfare payments
such as Newstart and the Disability Support Pension. The sharing of wages in Australia has
never been specifically equivalent and benefit expenditure remained at reduced levels by global
standards since 1970s. Studies mention that popular egalitarian sentiments since past 200 years
Australia thus appears to pose insignificant amount of impact in relation to tax and benefit
policies (Beer et al., 2016). This is since historically, the entreaty of the standard of equality as
well as a ‘fair go’ had greatly relied on the notion of equivalent rights whereby everyone must be
matter of similar instructions and equitable status than with support for equal wealth or earnings.
However, policy terms had been stated in the early years of 20th century not in significant benefit
state or a administration of high fiscal policy but in the custom of the household earnings that is
the idea that all employed males of the family must be in a position to financially aid their own
families. In recent times, the ideal of a ‘fair go’ implied that publics’ earnings must be rearranged
to make more incomes that are equitable (Richards, Kjærnes & Vik, 2016). Considering this
approach, the reliable Australian tradition of egalitarianism seems more alignment to self-aided
principle than with redistributionist one. Nevertheless, it is in recent times that extensive
dependence on welfare benefits has been interpreted as stable with a distinctive and authentic
Australian political culture.
In Australia, unemployed citizens received the "Newstart Allowance" which for lone
adults is 21%b under the poverty line. Reports revealed that over 38% of households who receive
Newstart have been estimated to be living below the poverty line in 2014. Saunders, Wong and
Bradbury (2016) noted that policy in Australia has been specifically focusing on the
improvement of income level via empowerment conception. In the view of Richards, Kjærnes

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and Vik (2016), the outcome of this policy focus has been dependent on the fact that poverty is
perceived as prevailing out there and something, which occurs to public. Thus, it is believed by
many scholars that when economy shortage is considered in such a way, policy response is
restricted in safeguarding citizens who are accepted rather than taking into consideration of
factors, which are causing poverty. Additional comprehensive studies have thrown light on areas
of shortcoming and have revealed that the outer sub-urban regions of Australia's chief cities are
gradually turning into positions of varied forms of disadvantages. Waitt, Roggeveen, Gordon and
Butler et al. (2016) in their studies produced complete positioning of localities starting from the
most to the least disadvantageous regions through a range of factors, which includes social
anxiety, education, financial benefits, health and community wellbeing. However, it is important
to note that when disadvantage tends to become rooted in specific zones 'the restorative potential
of standard facilities in educational as well as health conditions can lessen. The study is vital as it
positions the focus on the environment where people live instead of people on themselves.
Additional research has found that low-income people living in disadvantageous regions have
low rate of accessibility in domains of health and welfare improving settings than do low
earnings people in financially advantageous regions. Studies note that legislators in Australia
show prudence of establishing in order to decrease poverty level owing to former Labour Prime
Minister Bob Hawke declaration that by1990 Australian children will no longer be living in
poverty. Such a declaration has not been realised and since 1990, the major problem of poverty
has eventually been eliminated frothed reform agenda. Furthermore, scholars are of the opinion
that successive Howard Government eliminated any reference to poverty from the discussion of
social policy (Saunders, Wong & Bradbury, 2016). In addition to this, the Labour Government
which began in 2007 primarily accentuated on ‘social inclusion' instead of poverty. Additional

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agreements on poverty in Australia have been shedding light on aspects of health equity. Reports
of Saunders, Watanabe and Wong (2015) have found that the significant influence of living in
vulnerable social and financial conditions on health conditions. Saunders (2018) has cited
example of the degree to which people living in lower SES quintiles tend to experience severe
rates of premature death. Also men living in the lowest quintile show two times higher
propensity to mortality rate than the highest. However, the difference is relatively lower for
women where it has been found that the lowest are around 1.8 times more likely to experience
premature mortality.
Even previously, welfare programs have been used in order to reduce poverty in
Australia. Studies reveal that in 1973 the Australian government enquiry into poverty found that
almost 37% of males and more or less 31% of women earned below the poverty line. On the
other side, between 2009 and 2010, around 14% of citizens in senior citizen category had been
living below 50% of poverty line thus showing substantial decline since the 1970s. Moreover,
age retirees tend to show poorer possibility of poverty of all welfare receivers (Cheers, 2019).
This is because of the increased rate of home ownership rates with this age group along with
other investments. However, increasing the generosity of benefit programs have a tendency to be
problematic specifically in Australia due to lack of support for public opinion. At this juncture,
Martinez and Perales (2017) speculated that as all benefit programs include factor of
reallocation, their sustainability relies significantly on the provision of the ones who have been
experiencing severe conditions by the resources transfer that is involved. Drawing relevance to
these implications, Doyle, Mendes and Duffy (2015) claimed that approaches have decisive role
to serve in protecting as well as upholding the validity of the welfare structure.
Policy response

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Meanwhile, studies reveal that range of strategies have been introduced in order to lessen
poverty via public policy action. The primary public policy response towards poverty decline in
nations like Australia is dependent on the endowment of welfare expenses by means of cash
transferals. Studies of Lister (2015) have claimed that pension schemes such as age and disability
pensions has been initially presented in Australia during the early 1990 and indexed to the living
expense increases during the 1930s. Furthermore, means tested job redundancy along with
sickness welfare schemes were presented in 1945 along with a non-means tested child
empowerment compensation in 1941.However, as per the view of authors, non means tested
schemes has developed to means taxation welfare and direct support measures in lieu of low
earning families comprising of dependent children. However, under the Howard Government
these welfare schemes have been extended to middle class families. On the other hand, during
the budget introduced in 2000, family payments schemes has been revamped by introducing
Family Tax Benefits A and B which has been regarded as a shift that significantly liberalized
availability to these payments for higher income families (Saunders, 2018). Meanwhile, Family
Tax Benefit B specifically reclaimed 4% of earnings of Australian citizens. Saunders, Watanabe
and Wong (2015) have found in their studies that Australian welfare scheme shows contradiction
from other OECD Nations where majority of cash transmissions are financially aged by business
organisations and employee aids as well as welfares related to previous salaries of employees. In
Australia, employees’ benefits are essentiality aided from average income and are known as flat
rate rights, which have been regarded as means tested so that payments are reduced with the
elevation of the costs of other resources. According to Richards, Kjærnes and Vik (2016), the
primary agenda of such a strategy is to focus on the accessibility of resources for the financially
deprived sections of the country.

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However the major policy development in the last two decades depended on
improvement of the eligibility standards for these outflows and further to present strict
conditions related to the need of 'work for the dole’. Until the later phase of 1990s, the level of
several welfare expenditures had been relatively alike. However, in 2013 owing to various
indexation factors, the unemployment payment known as the Newstart Allowance was provided
to only around 65% of senior citizens. According to authors, it is known as one of the lowest
payments given to citizens experiencing job redundancy in the OECD. Australia has been
experiencing declining rate of unemployment payments due to its lack of self-regulatory
mechanism which can be used to evaluate income support payments for their capacity and
further to determine payment levels. On the contrary, the difference of payment systems implies
the marginalisation unemployed citizens are still facing in Australia. Beer, Bentley, Baker and
Mason et al. (2016), have further cited the phrase 'dole bludger' to refer to the common term of
derision.
Australia comprises a scheme of advanced revenue taxation, although there are various
ways present through which high waged citizens can circumvent taxation pay. In recent times,
income disparity has increased, thus making Australia to be one of the six most unequal Nations
in OECD, regardless of cultural notion of egalitarianism. According to Mendes (2017), current
initiatives by the Australian Labour Party to present new taxation payment in an endeavor for
redeployment have failed to achieve achievement. In addition to this, wealth is understood as an
unequally distributed factor with the most financially deprived sections, which is around 20%
due to about 1% of total net worth in comparison to 63% of net that is retained, by the affluent
20% of families. However, Sowell (2016) opined that with earning there is significant avenue for
growing taxation on capital via measures related to mortality duties. In their view, through

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political perspective it is unlikely to draw any possibility. The beginning of Australian carbon
release trading system in 2011 introduced by the labour organization has been able to accomplish
significant level of resistance from the Coalition whose leader has executed a program with
catchphrase that the scheme is merely 'great big tax'. Meanwhile, an equally significant campaign
would possibly meet any proposal to initiate wealth tax or mortality taxation rate. Furthermore,
the most advanced and developed political party in Australia is recognised as the Australian
Greens Party who mainly includes demands for expiry duties or capital taxation payment in their
policy agenda since 2013.
Conclusion
Hence, to conclude, the primary voice supporting poverty decrease in Australia is the
Australian Council of Social Services (ACOSS). Such politicization has been significantly
supported by policy permits related to ‘Poverty in Australia’ throws light on the
unaccomplishment of lessening poverty rate in Australia regardless of the increasing financial
prosperity of the nation. Furthermore, in recent years, the conviction that social disparity tends to
produce negative social outcomes has been reenergised by academic investigation thus proposing
that increasing number of unequal societies tend to be susceptible to reduced levels of physical
as well as mental condition. Furthermore, it has been recognized for extensive period that death
as well as illness proportions differ by earnings and by social class. Thus, society must be
concerned about poverty, but repeatedly been deceived by severely overstated evaluations of the
magnitude of the problem and disposition to assist others in financial need which has been
coupled to political plan of reorganization which in the continual offerings to the poor.

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On the other hand, participation, self-dependence, sustainability and empowerment are
recognized as major principles typically by social workers in the strategy for poverty reduction
plans and policies. Furthermore, the role of social workers is further reflected in fostering social
integration. Waitt, Roggeveen, Gordon and Butler et al. (2016) have noted that means-tested and
universal revenues such as transfer programs or social security gains tend to show an n anti-
poverty outcome in which they shift some families whose pre-transfer revenue lied below the
poverty level to an extent or above the poverty threshold. Furthermore, social workers’ continual
history of engaging with individuals in poverty circumstances and observing their varying
behaviour exemplifies the position of assimilating theoretical explanations regrading
professional values, which defer individuals, their choices and decisions. In such an approach,
community practice assimilate individuals and families with community work thus shedding
light on the development of resources and avenues in addition to individualistic capacities which
address social as well as monetary elimination and social fragmentation which is essential for
active poverty eradication.

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