Unequal relief: As pressure eases for some, cost-of-living crisis extends for Canberra’s lowest income earners

ACTCOSS’s latest ACT Cost of Living Report reveals that easing inflation and recent interest rate cuts have done little to relieve acute financial stress faced by Canberra’s lowest-income households.

ACTCOSS CEO, Dr Devin Bowles, said: “Improvements in the economy over the last year have disproportionately benefited middle and high-income earners, while those experiencing poverty continue to face acute financial stress. For many on income support or in insecure, low-paid work, the damage from years of rising prices is far from repaired.”

“Low-income households spend most of their income on essentials and have long since exhausted cheaper alternatives. As a result, families are forced into impossible choices — choosing between staying warm or having enough to eat” said Dr Bowles.

“Our best evidence is that those on income support are 14 times more likely to skip one or more meals per day than the general population” said Dr Bowles.

The 2025 ACT Cost of Living Report reveals that over the past five years Canberrans have seen the prices of many essential goods and services rise faster than overall inflation, with education costs up by 31%, housing by 22%, and food by 21%.

Rental affordability for low-income families remains bleak, with Anglicare’s 2025 Rental Affordability Snapshot revealing that not a single rental was affordable for someone relying on JobSeeker payments. Even full-time minimum wage earners could afford only 1% of rentals available in Canberra.

The Productivity Commission reports the ACT as having the highest rate of rental stress among Commonwealth Rent Assistance recipients nationally. Their 2025 Report on Government Services shows that half (50.3%) of these households in the ACT were spending more than 30% of their income on rent, and over a quarter (26.9%) were spending more than 50% of their income on rent.

“The cost-of-living crisis isn’t over — it’s just entering a new phase. While some households feel relief from easing inflation, those on the lowest incomes are still facing unbearable pressures and risk being left further behind,” said Dr Bowles.

“Without action, the gap will widen, and the harm will deepen. This is a problem that can and should be solved by government.

“The ACT Government should continue and accelerate action to increase the proportion of all housing which is social housing. The ACT Government should also focus cost of living supports on those who need them most, including COVID-19 era measures and for those in chronic energy hardship. Recognising that the community sector is often the last safety net for those in poverty, it should permanently increase community sector funding to recognise the full range of costs of service delivery.

“The Federal Government should increase all income support payments to at least $82 a day – on pay with pension payments,” concluded Dr Bowles.

With the 2025-26 ACT Budget fast approaching, ACTCOSS is urging the Government to prioritise households in greatest need and ensure essential cost-of-living supports are maintained and strengthened.

Quotes from ACT Community Sector Organisations

Brooke McKail, Deputy CEO, Domestic Violence Crisis Service (DVCS) said:

“Having a safe place to live, and money to afford essentials gives people experiencing family violence options. But right now, people escaping violence are staying longer in DVCS emergency hotel accommodation, because they can’t afford rental properties, and the wait for social housing is years long. We are helping to fill people’s cars with petrol, or top-up phone credit and basic essentials so people can leave or simply access help when it isn’t safe at home.

Safe, affordable housing and continued support for those on the lowest incomes would help make Canberra a safer place where everyone can live free from domestic and family violence.”

Lucy Hohnen, CEO, St Vincent de Paul Society Canberra/Goulburn said:

“Every single day, the St Vincent de Paul Society Canberra/Goulburn responds to urgent requests for help with rent, food, energy, and medical costs. Demand for support through our Vinnies Emergency Helpline continues to grow each year, reflecting the deepening hardship faced by people on the lowest incomes. For the 2,781 people assisted through this program over the last year, the cost-of-living crisis is not easing. The pressure to make impossible choices to get through the week is very real. Cost of living supports must remain in place for those who need them most.”

Francis Crimmins, CEO, YWCA Canberra said:

“YWCA Canberra welcomes the 2025 Cost of Living report which reinforces what Canberra’s frontline services see every day. We see new people turning up to services like our Lanyon food pantry every week. Many of these clients are people with jobs who have never needed help before. The cost-of-living crisis continues to affect Canberrans from all walks of life, and it will for some time. This Budget must have them and the services they rely on front and centre – vulnerable people must not be the salve to address a Budget deficit”

Carmel Franklin, CEO, Care Inc. said:

“For Care’s clients who are living on low or moderate incomes, cost of living takes on a much bigger meaning – it is the daily challenge of affording life’s essentials – food, housing, health care, utilities, education, transport, and so on. It is about the cost of surviving and living a life of dignity and opportunity for individuals and families.

In the case of housing costs, we know that the ACT is one of the most, if not the most, unaffordable jurisdictions for low-income households. Half of households in the ACT receiving Commonwealth Rent Assistance are in rental stress, and over a quarter are in extreme rental stress, spending more than half of their income on rent. With a shortage of over 5,000 social and affordable homes in the ACT and a 5 year wait for public housing, these people have nowhere else to go.

This is why a scheme like the Rent Relief Fund has been such a vital support for people experiencing rental stress or severe financial hardship. As a progressive, smart, and caring community, we need the ACT Government to prioritise such carefully targeted supports even more in a fiscally constrained budget environment.”

Press Conference: Launch of the 2025 ACT Cost of Living Report

When: Friday 20 June 2025 10am

Where: Outside ACT Legislative Assembly, Civic Square, 180 London Circuit Civic ACT.

For more information or comment, please contact:

Dr Devin Bowles, CEO, ACTCOSS, on 0413 435 080
Brooke McKail, Deputy CEO, DVCS, on 0438 100 175
Sophia Brady, Manager Communications and Marketing, St Vincent de Paul Society Canberra/Goulburn, on 0491 014 350
Eleanor Sander O’Hearn, Comms director, YWCA Canberra, on 0475 240 101
Aoife Berenger, Director of Operations, Care Inc., on (02) 6257 1788
Find attached: The 2025 Cost of Living Report.

ACTCOSS advocates for social justice in the ACT and represents not-for-profit community organisations. Follow us @ACTCOSS on Twitter, Facebook and Instagram.

For more information or comment, please contact
Dr Devin Bowles, CEO, ACTCOSS, on 0413 435 080.

Authorised by Dr Devin Bowles on behalf of the
ACT Council of Social Service Inc (ACTCOSS)