Aussies on minimum wage left with $33 after rent, food and transport, Anglicare finds

The Australian

12 hours ago

A worker on the minimum wage has just $33 left over after paying for basic weekly living expenses like rent, food and transport, while a two-child family with two parents working full-time would only have $5 remaining each week, 'bleak' new research has found.
Findings recorded by not-for-profit body Anglicare in its 2025 Cost of Living Index found that since 2023, a worker on the minimum wage would have $24 less left over after paying for basic expenses, largely reflecting the 'major increases in asking rents'.
The situation was even more startling for single parents looking after a child.
The report states that they would have just $1 left over for bills and discretionary expenses, even with social supports like the Family Tax Benefit and the Commonwealth Rent Assistance, which would beef-up their budget by $227.
New research from Anglicare found a worker on minimum wage would have just $33 left over after paying for weekly living expenses like transport, food and rent. Picture: Supplied
Anglicare Australia executive director Kasy Chambers said the results of the Cost of Living Index were 'bleak,' and said low-earning Australians were struggling to put money away for bills.
Her comments highlight findings from Anglicare which 331,750 Australians have accrued more than $300m in energy debt.
The number of households with unpaid electricity and gas bills totalling over $3000 had also surged by 11.8 per cent year-on-year.
'After paying for the basics, minimum wage workers are left with almost nothing. In many cases, there's no money left for energy bills at all,' she said.
'We're seeing more people trapped in energy debt. They are skipping meals, going without heating, and falling behind on bills they'll never be able to repay.'
Single parents with kids would have just $1 left over for bills and discretionary expenses, even with social supports. Picture: NewsWire/ Nicholas Eagar
The report noted that despite hardship programs offered by retailers, the system needed 'structural reform,' with struggling households unable to 'pay what they do not have'.
Ms Chambers said low-earning Aussies were being 'forced into payment plans they can't sustain,' and called on the government to provide new energy debt relief for people in hardship.
'People are forced into payment plans they can't sustain. They carry energy debt from one bill to the next with no chance of catching up, even though energy retailers are making record profits,' she said.
'Energy is not a luxury. It is essential to running a household, staying healthy, and living with dignity. It's time to rein in profiteering and make sure no one is left in the dark.'
Substantial increases in rent were a key reason for the reduced amount of disposable income for low paid workers. Picture: NewsWire / Andrew Henshaw
The report also made a series of recommendations targeting the escalating grocery costs, rent increases and increasing support for households in energy debt.
Among them include expanding home energy upgrades like rooftop solar and batteries, or insulating to provide long-term support, Commonwealth pressure on states and territories to introduce caps on rental increases, a commitment to boosting social and affordable housing by 25,000 homes a year, and rules on manning excessive pricing by supermarket giants.
Jessica Wang
NewsWire Federal Politics Reporter
Jessica Wang is a federal politics reporter for NewsWire based in the Canberra Press Gallery. She previously covered NSW state politics for the Wire and has also worked at news.com.au, and Mamamia covering breaking news, entertainment, and lifestyle.
@imjesswang_
Jessica Wang