Over 1 Million Australians Living In Poverty Despite 20 Years Of Economic Growth

More than a million of Australians are found to be living in poverty. A new report by the Committee for Economic Development of Australia said about 6 percent of the Australian population are “entrenched in disadvantage” despite the country’s 20 years of economic expansion.

About 1.5 million people were identified as living in poverty with many of them having little hope of improving their situation. Before the report was released, Professor Stephen Martin, the chief executive of CEDA, said it was time for the government to “tear up the rulebook” and find a new approach to deal with poverty.

He said any policy directed at reducing poverty should also address related issues like education and social exclusion. Martin identified such issues as significant areas in need of government intervention.

Martin said labour market programs should not be the main policy instrument for the disadvantaged. “It is absolutely clear that labour market policies have not worked because they fail to tackle the heart of the problem and yet it seems they are the only approach successive governments are willing to focus on,” added the professor.

He believes the main problem is not about people with no jobs but the consequence of mental health, social exclusion or discrimination and education levels. Martin said the government may have to increase welfare spending but the payoff in the long-term has significant potential. He added it would only be a waste of taxpayer’s money to continue welfare spending without establishing effective policies to help people move out of poverty.

The report found government early intervention programs were not being implemented on a wide enough scale to have a significant impact. CEDA said Australia needs to address education gaps, mental health and indigenous disadvantage.

The report suggested improving community-based care, implementing early intervention programs to reduce hospital admissions and creating policies in collaboration with indigenous communities as key reforms to alleviate poverty. CEDA said poverty was highest among the country’s elderly, specifically single older people, followed by single Australians of working age and single-parent families.

Australian poverty has exceeded the Organisation for Economic Cooperation and Development member countries. In 2010, OECD estimates revealed that the child poverty rate in Australia was higher than the 25 high-income countries by 15 percent. The figure is two percentage points above the OECD average.

Australian Social Services Minister Scott Morrison met with Liberal backbenchers to discuss the direction of the Abbott government’s welfare policy, reports SMH. Mental Health Australia chief executive Frank Quinlan believes fixing poverty is not as simple as telling people to go out and get a job.

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