Cost of Living

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In 2024, households in Canberra have continued to face a cost-of-living crisis, leading Canberrans to seek assistance from the community sector.

 

The 2024 ACT Cost of Living Report highlights the extent and severity of financial stress in Canberra that has worsened with the increase in the cost-of-living. It reveals that over the past five years Canberrans have seen the prices of many essential goods and services RISE ABOVE THE RATE OF INFLATION, with education +26.0%, housing +22.8%, medical and hospital services +22.4%, transport +22.3%, childcare +21.4%, food +20.0%, and gas +20.0%. The report reveals that children, young people and families have been disproportionately impacted by above-inflation increases in the cost of raising children in the ACT.

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Household rates have increased by between 4.5 and 9%, vehicle registration fees by 4%, drivers licence fees by 4%, public transport fees by 3%. This coupled with electricity costs that have increased by 12.75 % and water and sewerage charges that have increased by 7% have put a strain on Canberra households. Persistent homelessness in the ACT is almost TWICE THE NATIONAL AVERAGE and has been the highest in the country since at least 2018-19.

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This year, the Care Financial Counselling Service, which operates the ACT’s National Debt Helpline, reported a 17% rise in the support provided to clients experiencing financial hardship compared to the previous year, with areas of concern that include housing, energy bills, and general cost of living.

 

Over the past year, Care has seen an increase in demand across all programs: financial counselling, community loans, and consumer law. Care Inc. CEO, Carmel Franklin, has said that financial stress is on the rise and is impacting a broader cohort, including people who have were seeking assistance from a support service for the first time.

 

St Vincent de Paul Society was providing support for a much broader demographic this year, with a third of the calls to St Vincent de Paul Society’s emergency relief helpline from people seeking assistance for the first time, with FOOD AS THE NUMBER ONE NEED. The organization has witnessed an increasing demand for services from those experiencing or at risk of homelessness. New groups of people are seeking assistance for the first time, such as mortgage holders, private renters, and dual-income households, as the cost-of-living pressures affect a broader section of society, with 28% of requests from people who had never sought their assistance before.

 

St Vincent de Paul Society Canberra/Goulburn is supporting an increasing number of people experiencing hardship and homelessness, and requiring direct financial assistance, food, clothing, and other support. The organization's CEO Lucy Hohnen has said that as Australia’s cost of living and housing crises continue more Canberrans are experiencing ACUTE POVERTY.

 

The ACT Council of Social Service indicates that housing is the biggest cost of living pressure for low-income households in the ACT, WITH HIGHER RATES OF RENTAL STRESS THAN OTHER AUSTRALIAN JURISDICTIONS. ACTCOSS notes the Report on Government Services data which demonstrated that the current housing and homelessness policies were failing to meet the housing needs of Canberrans on low-incomes, including many in full-time work. The Council said there needed to be a broad review of the territory's concession schemes and a review of the ACT's tax system to assessed the fairness of existing levies, fees and charges.

 

Roundabout Canberra, a children's charity, has recorded a 32% increase in children needing material support this year alone. Roundabout Canberra social services manager Miranda Phillips has spoken of “many stories of parents waiting until they were on the brink, making choices between paying rent that week or purchasing items for their newborn, or nappies and clothing for their children". In 2023, more than 3 in 4 families assisted by Roundabout Canberra were experiencing financial strain and almost 1 in 3 families were experiencing homelessness or housing stress.

 

A report by the Deakin Residents’ Association, a non-profit association, analyzes the costs and benefits of LIGH RAIL in Canberra, and reviews the decision making that led to investing in light rail. The actual cost of Light Rail Stage 1 was more than $1.78 billion, contrary to promises that it would cost only $614 million. The report indicates that Stage 2B will have a projected travel time much longer than an express bus and cost much more than other competitive transport systems such as electric buses and better public transport alternatives available.

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I believe that a review of policies, existing levies, fees and charges must be undertake in order to provide Canberra's community with much needed relief, in the form of concessions on fees and rates, rental relief, and wider affordable housing projects. I believe that Territory funded rental assistance programs must be implemented to reduce housing costs for low and middle income families.

 

Noting that the total cost of Stage 2A was more than $1.46 billion, and that it is estimated that Stage 2B of the Light Rail will cost more than $4 billion, I will push for REDIRECTING OF FUNDS from projects that remain controversial, such as the Light Rail (due to its high cost and other factors that have not been adequately considered such as changing the originality and heritage of suburbs, projected travel time...) to assist with the rising cost of living, in the form of relief from rates, more affordable housing, and investments in health, as a viable approach to support households in need.