Hungry or Homeless
Anglicare explores Australia's cost of living crisis through key themes including income poverty, housing challenges, food management, energy poverty, and health access.
Australia's cost-of-living crisis is no longer a temporary shock, it is an entrenched challenge. Rising rents, persistent food insecurity, and increasing energy costs are forcing families into impossible trade-offs. Vulnerable households, especially women, children, and older Australians, are bearing the brunt. The following report, a result of 23 interviews with vulnerable people from all across NSW, details these findings and amplifies their voices.
Income poverty is persistent and structural, not a short-term budgeting problem. Even with social security and careful budgeting, most interviewees could not meet basic costs, let alone build savings. Small shocks, like a replacement uniform, car repair, or vet bill, regularly tipped people into crisis, arrears, or high-cost debt.
I had bills to pay (rent, electricity, loans)... I had to get all my bills out of the way before I spent money on food or anything like that.
The poverty line figures show how tight this is in practice: in 2022–23 the line was $584/week for a single adult and $1,226/week for a couple with two children, yet 3.7 million Australians (14.2%) lived below it, including 757,000 children, with an average shortfall of $390/week.
Housing is the single biggest pressure on people's budgets. Interviewees routinely spent well over 50% of income on rent, and any increase or shock (illness, school costs, broken appliance) could push them into arrears and towards eviction.
The landlords know I'm not going to be able to pay but if only they knew what I was going through. I would rather be hungry than be in this position
Over the last five years, rents in Sydney have risen by 39% for houses and 47% for units, with median rents now over $800/week, and more than 10% of households spending 30–50% of income on rent while 6% spend more than half.
Food was where people flexed the hardest because housing and utilities are fixed costs. Interviewees described doing "mini-shops" every few days, chasing specials, switching to home brands, and cutting out fruit, vegetables and meat to make money stretch.
We're not eating a lot of meat and vegetables… a lot of us are getting sick.
Many skipped meals, especially adults protecting children's diets, and some, like Jane and Tim, were down to a single cheap meal a day or food hampers.
In the morning for breakfast, I have… just the cheapest is a Happy Meal.
Energy poverty showed up both in household utilities and transport. Interviewees described turning off heaters and hot water, layering clothing in cold homes, and using shopping centres or libraries to escape heat. Poor housing quality (mould, drafts, old wiring) made it expensive to stay warm or cool.
I'm terrified of opening the electricity bill.
Transport costs, especially petrol, are a parallel form of energy poverty: people ration fuel, delay repairs, forgo insurance, or give up cars entirely, with direct impacts on work, care, and social connection.
Poor health and poverty form a vicious cycle. Many interviewees were living with chronic pain, disability, and serious illness (including cancer), but high out-of-pocket costs for specialists, scans, and travel meant care was often delayed or skipped.
I’ve got to get medicals done by a specialist so I can return to work. But they cost money, so I’m just waiting. It’s really restricting me.
Hygiene poverty (struggling to afford shampoo, deodorant, period products, cleaning supplies) quietly erodes dignity and participation. Jane, who had been living in her 'dirty' car, described the feeling of having a shower again after months of going without.
I felt lighter, like some heavy dust was gone. I felt so good.
Lower-income Australians experience higher rates of psychological distress, mental illness and suicide risk compared to wealthier households, Constant stress about bills, housing, food, and safety drains mental bandwidth, making it harder to plan, problem-solve, or pursue opportunities.
I am worrying all the time. I have to think and calculate and I can’t do anything. It puts so much stress in my head and mind.
Interviewees described mental exhaustion, anxiety, and hopelessness in the face of seemingly unsolvable financial challenges. Stress was also worsening physical health and impacting sleep quality.
Women, particularly single mothers, faced layered pressures: low income, high housing costs, unpaid care, domestic and family violence and child-related expenses. Interviewees described staying in, or returning to, violent relationships because they couldn't afford to leave.
I could spend that $600 on my daughter's trip. So, I used that money for her rather than the electricity bill.
Meeting children's everyday needs was a constant struggle. Clothing, uniforms, shoes, excursions, sports, digital access all add up. Mothers would often go without themselves, borrow from family, or delay bills so children can participate in school and sport.
Six evidence-based policy changes that could transform lives
Lift JobSeeker to ensure people can afford housing, living costs, and essential medicines. This would cost $9.5bn annually, a fraction of tax concessions for the wealthy.
Deliver 25,000 new social and affordable homes by 2029. We need 10% of all housing stock to be social housing to meet population needs.
Limit rent increases to inflation, create a landlord register for non-compliance, and require evidence for renovation evictions.
Invest in food rescue and cooperative buying networks. Support local co-ops that reduce costs through collective purchasing and local distribution.
Expand No Interest Loan Schemes and regulate Buy Now, Pay Later services to protect vulnerable people from predatory lending and hidden fees.
Adopt the Henderson Poverty Line as the national standard and publish poverty data annually instead of waiting years for updates.
Dive deeper into the data and stories behind Australia's cost-of-living crisis. Our comprehensive report reveals the stark reality facing thousands of Australians.
Download the full report →
Social Isolation and Loneliness
Many interviewees had thin or fragile social networks. Past trauma, substance use, family breakdown or relocation meant they had few close ties. Financial hardship compounded this: when you repeatedly say no to social invitations because you can't afford them, people eventually stop asking.
Limited resources were also restricting access to leisure and social activities, reinforcing social exclusion. Coffee with friends, weekend trips, kids' activities all come at a cost. Digital exclusion, particularly for older interviewees, also limited to access to essential services, such as housing, Centrelink and employment opportunities.