Western Australians on low income are experiencing entrenched and severe financial hardship, despite inflation slowing earlier in the year, moderate wage growth and government electricity credits, according to new data in the Western Australian Council of Social Service’s 2025 Cost of Living Report.
Working families and aged pensioners renting their homes are among those struggling to afford life’s bare essentials for survival.
Soaring rents are crushing the chance to achieve even a basic standard of living, consuming an unsustainable share of household income and leaving families with little for other essentials.
Over the past year:
- The model Single Parent Family fell short by a staggering $90.06 a week.
- After plunging into deficit for the first time last year, the Two Parent Family is still unable to cover even the basics — with weekly costs outstripping income by $16.59.
- Since the COVID supplement was withdrawn, the Unemployed Single has remained in an extremely fragile financial position, with only $8.53 left each week after covering basic costs.
- The financial position of the Age Pensioners (Renters) deteriorated further. They fell $69.50 short each week. The Age Pensioners (Homeowners) had $57.82 left over each week.
While inflation moderated in some areas earlier in 2025, essential costs remained historically high throughout the year, and several key expenses continue to climb. Years of relentless cost growth have already eroded household savings and pushed many into debt, leaving no buffer for any unexpected costs.
Rents continue to rise well above inflation, with the average WA household now paying almost $20,000 more in rent per year than they were in 2021 according to a recent Make Renting Fair report, while temporary electricity credits that offered short-term relief are set to expire, driving energy bills higher.
Across regional WA, higher food, fuel and transport costs put an even greater burden on household budgets, straining resources and undermining the social and economic strength of regional communities.
These persistent pressures, layered on years of financial strain, are deepening hardship for those already struggling to survive and pushing even more people into insecurity.
Employment alone is no longer a safeguard against financial insecurity. For children growing up in these circumstances, the long-term consequences of poverty – including poorer health, education outcomes and life trajectories – are well documented and deeply concerning.
WACOSS Chief Executive Officer Louise Giolitto said the 2025 data clearly showed that financial stress in WA is not easing; it is becoming more entrenched and corrosive.
“Households on low income remain unable to meet a basic standard of living. Over time, persistent shortfall has eroded financial resilience, is forcing harmful trade-offs and deepening reliance on coping strategies that carry further costs.
“The phrase ‘cost of living’ has become commonplace, but its meaning deserves reflection. This annual report measures the cost of essential goods and services required for a basic standard of living.
“The modelling accounts for only minimal replacement of essentials like clothing and cookware. It does not allow for savings or a financial buffer to cover crises, unexpected costs or discretionary spending. It represents the cost of survival.
“It is unacceptable that so many in our community now find every aspect of life – housing, energy, food, and transport – beyond reach. The sheer cost of survival is driving families into debt and homelessness.
“As we stare down the barrel of another potential inflation storm in 2026, the community services sector will be looking to the State Government to make crucial budgetary decisions that directly help those doing it toughest. It is no longer urgent. It is paramount to survival.”
The last five years have shone a light on the failings of our systems and the devastating impact of inaction. The State Government must act now. Without decisive action, more families will be pushed into hardship, support services will remain overwhelmed, and the cycle of disadvantage and people living in poverty in this State will deepen.