CANBERRANS living on low incomes are being hit hardest by the biggest increase in cost of living in over 20 years, a new report has found.

The stark findings of the ACT Cost of Living Report released by the ACT Council of Social Service (ACTCOSS) shows that more people are seeking support from Canberra community sector organisations due to the rising cost of living and declining income support.

ACTCOSS Deputy CEO Adam Poulter said over two thirds of community sector staff reported that in the past year levels of poverty and disadvantage had increased among the groups they support.

“In March 2022, the [Consumer Price Index] recorded its largest annual rise since the year 2000. This week the RBA Governor said inflation is expected to rise even further this year,” said Mr Poulter.

“Over the past 12 months, Canberra’s community organisations have seen demand for support increase as households have struggled to stretch declining budgets to cover the rising costs of the basics.”

Analysis of Canberra Consumer Price Index (CPI) data shows that over the past five years:

• Automotive fuel prices increased by 35 per cent
• Electricity prices increased by 28 per cent
• Gas prices increased by 24 per cent
• Medical and hospital services prices increased by 21 per cent
• Housing prices increased by 19 per cent
• Education prices increased by 17 per cent; and
• Meat and seafood prices increased by 16 per cent.

“The sharp rise in the cost of living over the past 12 months coincided with the removal of temporary boosts to income support that had lifted thousands of Canberrans out of poverty during the initial phase of the COVID-19 pandemic,” said Mr Poulter.

“It is estimated that since the phasing out of JobKeeper and the Coronavirus Supplement, the number of Canberrans living below the poverty line increased above 38,000 people, including 9,000 children.

“Compared to a year ago, a single person on JobSeeker is receiving $93 less each week and living on just $46 a day. Their weekly income is now $138 below the poverty line. For a young person looking for work on Youth Allowance, their weekly income is now almost $200 below the poverty line.

“We need the next Federal Parliament to raise the rate of working age payments to at least $70 a day so that everyone has enough to cover the basics while going through tough times.”

The report also shows that amidst the ACT’s housing affordability crisis, Commonwealth Rent Assistance (CRA) is failing to protect most recipients from experiencing housing stress.

The ACT has the highest proportion of CRA recipients receiving the maximum rate, and the highest proportion of recipients experiencing rental stress at 55 per cent.

“Canberra remains the most expensive capital city to rent a house or a unit and the ACT has the highest rate of rental stress among low-income private renters,” said Mr Poulter.

“Alongside a chronic lack of affordable private rental properties, the ACT has a shortage of over 5,500 social and affordable housing dwellings. The next Federal Government needs to deliver a 25,000 dwelling per year social and affordable housing package to reduce homelessness and kick-start housing construction and growth in jobs and incomes.”