Nearly one in six Australian children are growing up in poverty, undermining physical, cognitive, social and emotional development. This report outlines the current and future impacts of rising rates of financial deprivation on child wellbeing. Reducing child poverty requires inclusive measures that address all household types. Without action, Australia risks long-term social and economic harm.

Key drivers of child poverty are identified as rising housing and rental costs, slow wage growth compared to living costs, and families on low or fixed incomes falling behind.

Key findings

• 868,300 children (15%) lived below a standard (50%) poverty line in 2023.
• Child poverty rose sharply post-COVID due to inflation and stagnant wage growth.
• Projection for 2025: 15.6% national child poverty rate, which equates to over 950,000 children living below the poverty line.
• Single-parent households face the highest risk of poverty.
• In couple households, the risk of living in poverty is lower, but numbers are higher: 565,600 children living below a 50% poverty line.

Key recommendations

• Enact legislation introducing a child-centred definition of poverty that sets clear targets and reporting requirements for governments and their agencies.
• Increase social security and family payments to lift recipients out of severe poverty.
• Increase support to single parent households.
• Tackle the structural issues driving the growth of housing unaffordability.