Wellbeing Budget 2022

A Secure Future

No single measure tells a complete story of child poverty

The Child Poverty Reduction Act 2018 (the Act) specifies three primary measures[2] of child poverty, including measures related to income and material hardship. Given the complexity of the issue it is important that these measures are considered together.

Simple family icon in red
Simple family icon in red
Simple family icon in red
  After-housing-costs, fixed-line measure
(AHC50)
Before-housing-costs, moving-line measure
(BHC50)
Material hardship
What does this measure? The number of children in households with incomes much lower than a typical 2018 household, after they pay for housing costs. The number of children in households with much lower incomes than a typical household. A direct measure of living standards and households going without the basics - picks up the impact of the level of income and other resources, the costs of housing and other essentials and other social and personal factors.
How do we measure it? The threshold line is 50 percent of the median household income in 2017/18, after housing costs are removed. The threshold line is 50 percent of the median household income in the year measured. The threshold line is a lack of six or more out of the 17 items in the material deprivation index, which include things like having two pairs of shoes in good condition and not putting off visits to the doctor.
What does this tell us? How many households have very low incomes relative to previous years, after considering housing costs and increases to the cost of living. How many households have much lower incomes than typical households. An increase in median incomes leads to an increase in the threshold, which can make it harder to lift households out of poverty. How many households do not have access to the essential items for living.

Notes

  1. [2] Persistent poverty is the fourth primary measure, targets for which are required for and after the financial year commencing on 1 July 2025.
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