Child Poverty in Australia 2025: The current and future impacts of rising rates of financial deprivation on child wellbeing
The health and wellbeing of a society – and its future growth – are measured by how it cares for its children. A smart and forward-looking community nurtures its children and young people, creating a happy and healthy environment in which they can develop and thrive. In Australia, increasing financial hardship and rising child poverty threaten this future.
Why It Matters
Children need safety, secure housing, nutritious food, quality healthcare, and education—regardless of where they live or their parents’ circumstances. Yet, nearly one in six Australian children are growing up in poverty, undermining physical, cognitive, social, and emotional development.
- Poor nutrition limits growth and learning.
- Unhealthy housing increases chronic illness risks.
- Financial stress erodes family wellbeing and excludes children from social participation.
When children miss opportunities to thrive, our shared future is diminished.
The Data
- 868,300 children (15%) lived below a standard (50 per cent) poverty line in 2023.
- Child poverty rose sharply post-COVID due to inflation and stagnant wage growth.
- Projection for 2025: 15.6 per cent national child poverty rate, which equates to over 950,000 children living below the poverty line.
- Single-parent households face the highest risk of poverty:
- 36.6 per cent live below the standard (50 per cent) poverty line
- 10.8 per cent live in extreme poverty (below 30 per cent of median per capita household equivalent income)
- In couple households, the risk of living in poverty is lower, but numbers are higher: 565,600 children living below a 50 per cent poverty line.
Key Drivers
- Rising housing and rental costs
- Budgets for lower income families are disproportionately affected by rising rental costs
- Rental cost inflation has continued to rise, with median weekly rental costs for a three-bedroomed house increasing by $126 to $633 since June 2022 – an increase of 25 per cent over the past three years
- Slow wage growth compared to living costs
- Families on low or fixed incomes falling behind
Policy Imperative
Reducing child poverty requires inclusive measures that address all household types. Without action, Australia risks long-term social and economic harm.
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How to cite
Duncan A & Twomey C (2025), ‘Child Poverty in Australia 2025: The current and future impacts of rising rates of financial deprivation on child wellbeing’, Bankwest Curtin Economics Centre, November 2025.
The Bankwest Curtin Economics Centre team acknowledges the Wadjuk Nyungar people as the traditional owners of the land on which the Centre is situated.