Australia urgently needs a consistent measure of poverty to drive meaningful change.

Currently between 13.4% and 21% of Australians live in poverty. Why is there such a discrepancy in these numbers? Because Australia has never had an official, nationally consistent definition to fully understand the scale of poverty or track progress over time.??

A lack of a single, agreed-upon measure has meant that research and reports often rely on different methods, leading to vastly different conclusions about how many people are being affected and to what extent. The policy implication is that we truly do not understand the cost of supporting people.??

This inconsistency isn’t due to a lack of options - there are several approaches being used domestically and internationally.?

One commonly used measure in Australia is the Henderson Poverty Line, which calculates the income needed for a family of four (two adults and two children) to maintain a basic standard of living. Another widely recognised approach comes from the Australian Council of Social Services (ACOSS) and the University of New South Wales (UNSW). Their definition of poverty focuses on people living on less than 50 per cent or 60 per cent of the national median income, taking into account housing costs.?

Many countries have already adopted an official measure of poverty. Countries within the European Union measure poverty as earning less than 60 per cent of the national median income. The United Nations goes further with a Multidimensional Poverty Index (MPI), which has been applied to over 100 developing countries. This comprehensive framework paints a detailed picture, assessing poverty through education, health and living standards – not just income.??

While no single measure is perfect, having a consistent way to define and measure poverty is critical to creating meaningful change. Without a standardised approach, it becomes nearly impossible to fully grasp the size of the issue, gauge how much progress has been made, or evaluate the effectiveness of existing policies.??

A national poverty measure is not just about knowing the scale of the issue. It’s about ensuring our resources are targeted where they are needed most, and that we are held accountable for making real progress.??

If Australia is serious about reducing inequality and providing a decent quality of life for all, adopting a standard measure of poverty is essential. It’s about more than just numbers – it’s about ensuring our efforts to combat poverty are measurable, impactful, and truly make a difference.??