Budget standards research has a long and distinguished history in Australia and has played an important role in Australian wage determination. The Fair Work Commission (FWC) Annual Wage Review 2019–20 decision referred to budget standards as one consideration when assessing the needs of the low paid, particularly the report on budget standards developed for low paid Australians by Peter Saunders and Megan Bedford in 2016 and published in 2017 (Saunders and Bedford, 2017).

This project, undertaken by a team of researchers from the Social Policy Research Centre (SPRC) at the University of New South Wales (UNSW), has reviewed and revised the budget items in the 2017 report and expanded on the previous report by including feedback from a broader section of the community (both low-paid and middle-income households). An exploratory supplementary budget of discretionary items required to participate in Australian society is also included.

The research presented here builds on existing research to develop modern budget standards that reflect the needs of low paid Australians which can be used to assess adequacy and guide decision-making. The research is the first of its kind in Australia to be undertaken following a pandemic and during the highest inflationary period since the 1990s. It provides the most comprehensive and thorough estimation of the costs of living in contemporary Australia.

This research includes a careful consideration and updating of previous budgets, along with an active engagement with real families (via focus group consultations) to ensure that the standards conform to prevailing community standards and expectations. The new budgets incorporate the shift in people’s purchasing behaviour in the last decade through the normalisation of online shopping, and the long-term impact of changes to people’s work-life practice as more people work from home and participate in online learning in a post-pandemic environment.