Policy context

Low-income households refer to households which earn less than $1,000 per week, despite household composition, rendering them under the recognised Australian poverty line as of 2026.¹

The OECD defines poverty as ² “the ratio of the number of people (in a given age group) whose income falls below the poverty line”. ³ Whose household income is less than 50 percent of the median income of that country

Poverty has both immediate and longer-term effects on the health and wellbeing of children and young people. Research indicates that childhood experiences shaped by poverty, such as housing instability or lack of basic amenities, may hinder overall childhood development and youth wellbeing.⁴

A low-income upbringing directly impacts access to vital amenities such as health care, nutritional food and sufficient education. This leads to detrimental impacts on physical health, educational attainment and social functioning, which may carry lasting effects onto adulthood.⁵

It is critical to understand what factors contribute to children and young people living in low-income households and what that living environment means for their growth, development and overall wellbeing. Certain household characteristics can make a household more at risk of poverty than others, such as single parent, migrant and disabled parent households. These demographics may be unable to earn or work as much as an able-bodied two parent household, making them at risk of poverty. Being aware of this information can inform policy decisions to be more sensitive towards children and youth with limited access to housing, education and nutrition. As well as focusing on particularly vulnerable areas to enlist early supports for children and young people living in low-income households.⁶