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Poverty in Victoria
Robert Tanton, Dominic Peel and Yogi Vidyattama
November 2018
About NATSEM/IGPA
The National Centre for Social and Economic
Modelling (NATSEM) was established on 1 January
1993 and supports its activities through research grants,
commissioned research and longer term contracts for
policy analysis and model development and maintenance.
2
About VCOSS Author note
Authors of this report are:
As the peak body for the state’s social and community Professor Robert Tanton, University of Canberra
sector, VCOSS works towards eliminating poverty and
Dominic Peel, University of Canberra
disadvantage in all forms and creating a society where
everyone is supported to thrive. Dr Yogi Vidyattama, University of Canberra
Our members include charities, peak bodies, frontline Tanton, R., Peel, D. and Vidyattama, Y., (2018), ‘Poverty
service groups, advocacy organisations and individuals in Victoria’, NATSEM, Institute for Governance and
passionate about developing a sustainable, fair and Policy Analysis (IGPA), University of Canberra. Report
equitable society. commissioned by VCOSS.
3
Acronyms
ABS Australian Bureau of Statistics
ASGS Australian Statistical Geography Standards
IGPA Institute for Governance and Policy Analysis
NATSEM National Centre for Social and Economic Modelling
VIC Victoria
SA2 Statistical Areas Level Two
SPRC Social Policy Research Centre
VCOSS Victorian Council of Social Service
Contents
Acronyms 4
Executive summary 6
Methodology 8
Calculating poverty 8
Data sources 9
Victorian poverty rates 10
The composition of poverty 14
Gender and poverty 16
Age and poverty 20
Families and poverty 24
Employment and poverty 28
Housing and poverty 32
Disability and poverty 36
Aboriginal Victorians and poverty 38
Discussion 40
Conclusions 42
References 43
Appendix 44
6
This rare analysis allows organisations to effectively
target local service delivery. We hope it will be used by
governments, community planners and service providers
for better services.
This method has been used for the online maps and
the map presented in this report, but not for the State
level results in this report, which are nearly all calculated
directly from the ABS survey.
1 Note: This report uses the term ‘Aboriginal’ to be inclusive of all Aboriginal
and Torres Strait Islander people.
9
Victorian poverty rates
10
Table 1
Poverty rates for different demographics in Victoria, Greater Melbourne and the Rest of Victoria
Employed full-time3 3% 3% 5%
Employed part-time 8% 8% 9%
Unemployed 35% 33% 41%
Aged 15-64 not in labour force 28% 28% 29%
Aged 65+ and not in labour force 10% 11% 9%
3 This is the proportion of all people in households experiencing poverty with this employment status, rather than the proportion of people in households in poverty
where the head of household experiences this employment status, as used in the ACOSS report. This is to ensure consistency with our later area based analysis.
4 Calculated from NATSEM’s synthetic population rather than direct from the Survey of Income and Housing.
11
> View data for every
local area at
povertymaps.vcoss.org.au
Figure 1
Frequency distribution of poverty rates across Victorian SA2s
20
15
percent
10
0
0 10 20 30 40
Overall poverty rate
12
Figure 2 shows the regions with the highest poverty rates economic diversity than regional SA2s. This spatial
tended to cluster in the outer suburbs of Melbourne. The segregation by socioeconomic status serves to highlight
areas with the lowest levels of poverty were also primarily concentrations of poverty.
clustered in and around Melbourne.
As areas get larger, such as in regional areas, pockets of
The clustering of areas of high and low poverty in and poverty can be hidden, due to poor households sharing
around Melbourne is likely due to urban SA2s tending the area with higher income households.
to be both geographically smaller and having less socio-
Figure 2
Spatial distribution of poverty rates for Victorian SA2s. Melbourne region shown in inset.
14.0
12.0
10.0
Men in
8.0
poverty
264,900 Women in
6.0
poverty
311,800
4.0
2.0
0.0
Greater 53.5%
Melbourne
13
Regional
55.7%
The composition of poverty
Poverty rates give a quick and simple view of the concentration of poverty
in a particular place. But they do not tell the whole story. To understand
how poverty affects communities, we need to understand who lives in
poverty in different places.
The ‘composition of poverty’ refers to the proportion of all people living
in poverty from different demographics. For example, an area may have a
population of 1000 people, of which 100 are in poverty. This would mean
the poverty rate in that area is 10%.
But to deepen our understanding, we want to Online maps, associated with this report, provide
know who lives in in poverty. Of those 100 people the ability to look at the composition of poverty for
in poverty, it may be that 55 are female and 45 are small areas across Victoria. These are available at
male. Therefore, the composition of poverty would povertymaps.vcoss.org.au.
be 55% female and 45% male.
We also estimate the number of people in poverty
in each group. This is calculated by applying the In some areas, poverty may be
proportion of people in poverty to the number of
relevant people. This is people aged 15 and above concentrated among unemployed
for labour force status; gender; and disability; and
all people (excluding those living in households with people or those living in public
zero or negative incomes) for all other groups. housing. In other areas, possibly
Estimates of the number and proportion of people
in poverty in each group are shown in Table 2. This
with very high housing costs or
provides the composition of poverty across the very low wages, those employed
whole of Victoria.
full-time may comprise a large
We then consider the composition of poverty for
each characteristic we examined. We provide segment of people living in poverty.
state-wide results, a comparison of Melbourne and
regional Victoria, and a snapshot of the composition
for different local areas, showing how diverse the
composition can be at the local level.
1 Numbers are to nearest 100. Rounding means that in some cases the Greater Melbourne and Rest of State totals won’t add to the Victoria total. The total population
is the population less households with negative and zero incomes, but including those with own source income. This is the same treatment as the ACOSS poverty
numbers.
15
Gender and poverty
20 30 40
Overall poverty rate
20 30 40
Overall poverty rate
16
Gender of Victorians in poverty Victorian poverty rates by gender
Number of Victorians experiencing Prevalence of poverty by gender
poverty aged 15+, by gender of people aged 15+
14.0%
10.0%
Men in
12.0%
8.0%
poverty
264,900 Women in 12.8%
10.0%
6.0%
poverty 11.3%
Men in 311,800
8.0%
4.0%
poverty
264,900 Women in 12.8%
6.0%
2.0%
poverty 11.3%
311,800
4.0%
0.0%
Women Men
2.0%
Melbourne and regional
Gender Victoria
composition of poverty in Melbourne and Regional Victoria
When we compare Melbourne with regional Victoria, 0.0%
we see the proportions of those
Gender proportions of people experiencing poverty aged
Women 15+in Men
poverty are similar, with women slightly more heavily represented outside Melbourne.
Women Men
Greater
Regional 53.5% 46.5%
Melbourne 55.7% 44.3%
Victoria
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Regional
55.7% 44.3%
Victoria
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
17
Gender of Victorians in poverty Victorian poverty rates by gender
Number of Victorians experiencing Prevalence of poverty by gender
poverty aged 15+, by gender of people aged 15+
Regional
55.7% 44.3%
Victoria
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
18
Gender of people living in poverty in cross-section of areas
Proportion of people in poverty aged 15+ by gender (total number in brackets)
Women Men
Inner Melbourne
Docklands (1400) 45% 55%
Brunswick West (1900) 50% 50%
Newport (1500) 55% 45%
Ashburton (600) 61% 39%
Outer Melbourne
Rockbank - Mount Cottrell (200) 49% 51%
Sunshine (1800) 54% 46%
Mernda (2400) 59% 41%
Belgrave - Selby (900) 65% 35%
Inner Regional
Buninyong (500) 46% 54%
Phillip Island (1500) 52% 48%
Rushworth (500) 58% 42%
Kinglake (500) 64% 36%
Outer Regional
Kerang (400) 49% 51%
Nhill Region (600) 52% 48%
Bairnsdale (2100) 55% 45%
Irymple (700) 58% 42%
0% 20% 40% 60% 80% 100%
20
Age of Victorians in poverty Victorian poverty rates by age group
Number of Victorians in poverty by age group Prevalence of poverty in each age group
20.0%
Retirement
age (65+)
83,600 15.0%
Children
(0 -14)
198,600
10.0%
18.7%
15.6%
Working Young
age (25-64) people 11.9%
5.0% 9.9%
374,100 (15-24)
118,000
0.0%
Children Young Working Retirement
(0-14) people age age (65+)
(15-24) (25-64)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
21
Age of Victorians in poverty Victorian poverty rates by age group
Number of Victorians in poverty by age group Prevalence of poverty in each age group
20.0%
Retirement
age (65+)
83,600 15.0%
Children
(0 -14)
198,600
10.0%
18.7%
15.6%
Working Young
age (25-64) people 11.9%
5.0%
Melbourne
374,100 and regional Victoria
(15-24) 9.9%
118,000
When we compare Greater Melbourne with the
rest of Victoria, Age of children
we see Victorians in poverty
comprise a larger Victorian poverty rates by age group
shareNumber
of the population living in
of Victorians in poverty
povertyinby Victoria’s
age group0.0% Prevalence of poverty in each age group
regions. In contrast, Melbourne has a higher Children Young Working Retirement
20.0%
proportion of young people among those living in (0-14) people age age (65+)
poverty than regional Victoria. (15-24) (25-64)
Retirement
age (65+)
83,600 15.0%
Children
(0 -14)
Age composition of poverty in Melbourne and Regional Victoria
198,600
Children (0 - 14) Young people (15-24) Working
10.0%age (25-64) Retirement age (65+)
18.7%
15.6%
Greater Working 24.3% Young
16.3%
people 48.6% 10.8%
11.9%
age (25-64) 5.0%
Melbourne 374,100 (15-24) 9.9%
118,000
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Inner Melbourne
Outer Melbourne
Mickleham Children
& Yuroke(0(400)
- 14) Young 30%
people (15-24)
4% Working age (25-64)
56% Retirement age
10%(65+)
Inner
Dromana Melbourne 23%
(1400) 9% 40% 28%
InnerMelbourne
Regional (9400) 9% 34% 51% 6%
Fawkner
Flora Hill & Spring Gully (1200) (2900) 20% 30% 26% 13% 41% 44% 12% 13%
RomseyBulleen
(1100) (1100) 23%
38% 9%7% 40%
40% 28%
14%
South Yarra (200)
Macedon (West) (500) 5% 22% 49% 23%
17% 4% 56% 23%
Outer Melbourne
Seymour Region (300) 10% 10% 50% 30%
Burnside Heights (900) 44% 8% 46%
Outer Regional
Clayt on (5100) 16% 31% 40% 12%
Lockington & Gunbower (400) 37% 10% 46% 6%
Mickleham & Yuroke (400) 30% 4% 56% 10%
Yarriambiack (600) 22% 19% 43% 16%
Dromana (1400) 23% 9% 40% 28%
Foster (1100) 17% 16% 51% 17%
Inner Regional
Mansfield (800) 20% 5% 51% 24%
Flora Hill & Spring Gully (1200) 20% 26% 41% 12%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Romsey (1100) 38% 7% 40% 14%
Outer Regional
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
23
Families and poverty
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
24
Family arrangements of Victorian poverty rates by family arrangement
Victorians in poverty Prevalence of people living in poverty
Number of Victorians in poverty in each family type
by family type
40.0%
Other 35.0%
family
63,200 30.0%
Family arrangements of
Lone 25.0%Victorian poverty rates by family arrangement
person Couple
Victorians in poverty
family with Prevalence of people living in poverty
119,300 20.0%
Number of Victoriansdependent
in poverty in each family type
36.1%
by family type children 15.0%
307,900
Couple 10.0%
40.0% 20.8%
family only Other 12.5%
144,400 familySingle 5.0%
35.0% 9.1% 6.8%
parent
63,200
family with 0.0%
30.0%
Lone dependent Couple Single Couple Lone Other
Couple 25.0%
family with parent family only person family
person children
119,300 139,400 family with dependent
20.0% family with
dependent children dependent36.1%
children 15.0% children
307,900
Couple 10.0% 20.8%
family only
Family composition
144,400 Single 5.0% 12.5%
of poverty in Melbourne and Regional Victoria 9.1% 6.8%
Melbourne and regional
parent Victoria
Couple family family
with dependent children 0.0%
Single parent family with dependent children
with
A comparatively higherdependent
Couple family proportion of people living in poverty
only Lone in Couple Single
couple families
person Couple
with children Lone Other
live in Greater Melbourne family with parent
(42.1%), compared to regional Victoria (33.9%). In contrast,
children family only person family
Other family
regional Victoria has a higher dependent family with
proportion of people in poverty living in single parent families
139,400
(25.0%) than in the city (15.3%). children dependent
children
Greater 42.1% 15.3% 19.6% 14.8% 8.2%
Melbourne
Family composition of poverty in Melbourne and Regional Victoria
Couple family with dependent
33.9% children 25.0%
Single parent
16.3%family16.9%
with dependent
8.0% children
Regional Victoria
Couple family only Lone person
Other family
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
25
Families and poverty at the
community level
Again, the pattern of family types can vary
considerably in local communities.
The inner suburb of East Melbourne has a high
proportion of its people living in poverty living in
lone person households (46%), like a number of
inner city suburbs.
Some outer suburbs feature a majority of people
living in poverty in couple families with children,
like Narre Warren North (53%) or Wollert (58%).
Some areas have high proportions of people
experiencing poverty in single parent families, like
Melton West (46%), Mornington (35%), Alfredton
(36%) or Robinvale (32%).
26
Family type of people living in cross-section of areas
Proportion of people in poverty living in each family type (total number in poverty in brackets)
Couple family with dependent children Single parent family with dependent children
Couple family only Lone person
Other family
Inner Melbourne
East Melbourne (300) 13% 3% 30% 46% 7%
Parkville (800) 16% 16% 15% 28% 25%
Heidelberg West (2700) 25% 32% 14% 20% 9%
Balwyn North (2600) 42% 23% 16% 8% 11%
Outer Melbourne
Mornington (2800) 19% 35% 20% 22% 4%
Narre Warren North (800) 53% 9% 19% 6% 13%
Wollert (1800) 58% 18% 12% 4% 9%
Melton West (2900) 33% 46% 8% 8% 6%
Inner Regional
Point Lonsdale-Queenscliff (300) 12% 28% 31% 29%
Colac Region (600) 42% 4% 21% 13% 20%
Maiden Gully (400) 37% 9% 19% 6% 29%
Alfredton (1100) 30% 36% 20% 12%
Outer Regional
Alexandra (600) 24% 11% 22% 36% 8%
Robinvale (400) 17% 32% 13% 17% 20%
Corangamite-South (800) 38% 12% 34% 12% 3%
Horsham Region (300) 52% 17% 17% 13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
27
Employment
and poverty
28
Employment status of Victorians Victorian poverty rates by
in poverty employment status
Number of Victorians in poverty aged 15+ Prevalence of poverty by each
by employment status employment status of adults aged 15+
e
15.0%
e
e
e
266,800
rc
ed
part-time 28.4%
tim
rc
tim
fo
oy
fo
92,600 10.0%
rt-
ll-
ur
pl
ur
fu
pa
bo
m
bo
Age 15 - 64 5.0% 10.4%
ed
ne
8.5%
la
d
la
and not in
e
oy
3.5%
U
in
oy
0.0%
n
labour Unemployed
pl
ti
t
pl
no
Em
no
66,900
Em
force
nd
e
d
4 me
e
e
266,800
rc
ed
an
rc
a
tim
fo
65 y
+
-6-ti
fo
e plo
ll-
ur
15 rt
ur
fu
e pa
bo
Agm
bo
ed
ne
la
Ag d
la
e
oy
n
oy
ti
pl
ti
pl
no
Em
no
Em
65
-6
Regional Victoria has a slightly higher proportion of people living in poverty despite
15
Age
working 15-64(14.5%)
full-time and notthan
in labour
Greaterforce
Melbourne Age 65+ and not in labour force
(11.3%).
Ag
e
Ag
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
29
Employment and poverty at the
community level
In some areas more than 2 in 5 people living in
poverty are working, such as the north-eastern
suburbs of Research and North Warrandyte (42%),
Family arrangements of Victorian
or the region poverty
surrounding therates
city ofby family(44%).
Mildura arrangement
Victorians in poverty Prevalence of people living in poverty
In other areas more than 1 in 5 are unemployed, like
Number of Victorians in poverty
the Melbourne suburb ofinMalvern
each family type or the
East (25%),
by family type Southern Grampians in Victoria’s west (24%).
40.0%
Many areas have significant proportions of older
Other
family people35.0%
having left the workforce in poverty, like
63,200 Beaumaris
30.0%(25%), Chiltern and the Indigo Valley
(32%) and the West Wimmera (30%).
Lone 25.0%
person Couple In some areas the majority of people living in poverty
119,300 family with 20.0%
dependent are under 65 but not in the36.1%
labour force, like Carlton
children (58%) 15.0%
or Meadow Heights (61%).
307,900
Couple 10.0% 20.8%
family only 12.5%
144,400 Single 5.0% 9.1% 6.8%
parent
family with 0.0%
dependent Couple Single Couple Lone Other
children family with parent family only person family
139,400 dependent family with
children dependent
children
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Inner Melbourne
Carlton (4800) 5% 10% 18% 58% 9%
Malvern East (2500) 7% 13% 25% 39% 15%
Kew East (700) 10% 21% 10% 42% 17%
Beaumaris (800) 16% 17% 6% 36% 25%
Outer Melbourne
Meadow Heights (4600) 4% 9% 14% 61% 12%
Bundoora - North (1400) 9% 11% 22% 45% 13%
Chelsea Heights (600) 15% 16% 5% 36% 28%
Research - North Warrandyte (400) 25% 17% 9% 27% 22%
Inner Regional
Maryborough Region (700) 6% 12% 16% 46% 20%
Chiltern - Indigo Valley (300) 20% 11% 11% 26% 32%
Seymour (800) 7% 27% 16% 38% 12%
Smythes Creek (400) 27% 13% 13% 31% 16%
Outer Regional
Avoca (400) 10% 9% 13% 50% 18%
West Wimmera (200) 10% 19% 8% 33% 30%
Southern Grampians (600) 16% 13% 24% 30% 17%
Mildura Region (400) 20% 24% 13% 20% 23%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
31
Housing and poverty
32
Housing of Victorians in poverty Victorian poverty rates by housing tenure
Number of Victorians in poverty by Prevalence of poverty for each housing tenure
housing tenure
60.0%
Other 50.0%
tenure Owned
89,200 outright
Publicly 40.0%
Housing of Victorians
139,100 in poverty Victorian poverty rates by housing tenure
rented
Number of Victorians in poverty by
64,800 Prevalence of poverty for each housing tenure
housing tenure 30.0%
60.0%
51.4%
20.0%
Privately 50.0%
rented Other Mortgaged
222,200 tenure 258,800
Owned
10.0% 20.8%
89,200 outright 18.7%
Publicly 40.0%
139,100 8.8% 9.6%
rented
64,800 0.0%
30.0%
Owned Mortgaged Privately Publicly Other
outright rented rented tenure
51.4%
20.0%
Privately
rented Mortgaged
222,200 258,800
10.0% 20.8%
Melbourne and regional
Housing Victoria
composition of poverty in Melbourne and Regional Victoria 18.7%
9.6%
Owned has
Regional Victoria outright
a higher Mortgaged Privately
proportion of people rented8.8%
experiencing Publicly rented Other tenure
0.0%
poverty living in homes owned outright (24.6%). Greater Melbourne
Owned Mortgaged Privately Publicly Other
has a higher proportion of people experiencing poverty in privately
outright rented rented tenure
rented homes (30.4%).
Greater Melbourne 15.5% 34.3% 30.4% 7.8% 12.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Greater Melbourne 15.5% 34.3% 30.4% 7.8% 12.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
33
Housing and poverty at the
community level
Housing of Victorians in poverty Victorian poverty rates by housing tenure
Number of Victorians in poverty by HousingPrevalence
shows a very of clear pattern
poverty acrosshousing
for each local tenure
housing tenure areas: broadly, the further from the centre of
Melbourne,
60.0% the higher the proportion people living
in owner-occupied homes.
%
Greater Melbourne 15.5% 34.3% 30.4% 7.8% 12.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
00%
Inner Melbourne
Outer Melbourne
Inner Regional
Outer Regional
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
35
Disability and poverty
Inner Melbourne
Collingwood (1400)
also more likely to live in poverty
9% 12% 19% 50% 10%
than those without disability.
Collingwood (1400)
Armadale (900) 9% 16%
12% 19%
16% 43% 50% 7% 10%
18%
Armadale (900)
Southbank (2500) 16%
11% 16%
22% 43% 60% 7% 18% 8%
Southbank
Burwood (2500)
East (1400) 11% 22%
30% 34% 60% 30% 8%7%
Burwood East
Outer (1400)
Melbourne 30% 34% 30% 7%
Outer Melbourne
Broadmeadows (3800) 18% 31% 24% 19% 8%
Broadmeadows (3800)
Doreen (2700) 18%
7% 31%
52% 24% 28%19% 8%
11%
Doreen (2700)
Keilor (800) 7% 32% 52% 42% 28% 22%11% 3%
Keilor (800)
Lynbrook and Lyndhurst (2200) 13%32% 42%
73% 22% 10%
3%
Inner Regional
Lynbrook and Lyndhurst (2200) 13% 73% 10%
Inner
Bendigo Regional
Central (2000) 10% 23% 46% 8% 13%
Bendigo Central
Bacchus Marsh (2000)
(2500) 10%
12% 23% 39% 46% 23% 8%
12% 13%
14%
Yea (500)
Golden Plains South (600) 12% 35% 30%
71% 18% 15%
16%
Golden PlainsOuter
SouthRegional
(600) 12% 71% 16%
OuterNorth
Mildura Regional
(2700) 10% 25% 43% 9% 12%
Orbost
Swan Hill (900)
Region (700) 15%36% 25%
64% 26% 12%
19%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
36
Melbourne and regional Victoria
Regional Victoria has a substantially higher proportion of its people experiencing
poverty who have a disability, compared with Greater Melbourne.
14.0%
12.0%
2.0%
0.0%
People with disability People without
0.0% disability
People with disability People without
disability
Disability composition of poverty in Melbourne and Regional Victoria
Proportions of people experiencing poverty with and without disability, aged 15+
Disability composition of poverty in Melbourne and Regional Victoria
Proportions of people People with disability
experiencing poverty withPeople without
and without disabilityaged 15+
disability,
People with disability People without disability
Greater 31.7% 68.3%
Melbourne
Greater 31.7% 68.3%
Melbourne
Regional 41.4% 58.6%
Victoria
Regional 41.4% 58.6%
Victoria
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
37
Aboriginal Victorians
and poverty
2.0% 0.0%
People with disability People without
0.0% disability
People with disability People without
disability
Disability composition of poverty in Melbourne and Regional Victoria
Proportions of people experiencing poverty with and without disability, aged 15+
Disability composition of poverty in Melbourne and Regional Victoria
People with disability People without disability
Proportions of people experiencing poverty with and without disability, aged 15+
People with disability People without disability
Greater 31.7% 68.3%
Melbourne
Greater 31.7% 68.3%
Melbourne
Regional 41.4% 58.6%
Victoria
Regional 41.4% 58.6%
Victoria 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
38
Aboriginal Victorians in poverty Victorian poverty rates by
Number of Victorians in poverty by Aboriginal status
Aboriginal VictoriansAboriginal
in povertystatus Victorian Prevalence
poverty rates by
of poverty by people
Number of Victorians in poverty by Aboriginal Aboriginal status
Aboriginal status
Aboriginal status people in Prevalence of poverty by people
Aboriginal poverty 30.0%
11,200 Aboriginal status
people in
poverty 30.0%
11,200 25.0%
25.0% 20.0%
20.0% 15.0%
25.4%
15.0% 10.0%
Other people in poverty 25.4%
763,000 10.0% 13.0%
Other people in poverty 5.0%
763,000 13.0%
5.0% 0.0%
Aboriginal people Other people
0.0%
Aboriginal people
Proportion of people in poverty Other people
who are Aboriginal
Proportion of people inand
Melbourne poverty
Regional Victoria
who are Aboriginal
3.5%and Regional Victoria
Melbourne
3.0%
3.5%
2.5%
3.0%
2.0%
2.5%
1.5% 2.9%
2.0%
1.0%
1.5% 2.9%
0.5% 0.9%
1.0%
0.0%
0.5% 0.9% Greater Regional
0.0% Melbourne Victoria
Greater Regional
Melbourne Victoria
39
Discussion
For the first time in Victoria, this analysis has looked at poverty rates not
only by small area, but by small area and demographic group. This allows
governments, community planners and local service providers to know
who they are servicing in a local area.
Different groups will need different services – a Around a quarter of people living in poverty (aged
high proportion of renters in poverty in an area over 15) had a job, with nearly half of these working
may indicate a high need for housing assistance; full-time. Around 1 in 8 people living in poverty (aged
but a high proportion of unemployed in poverty in over 15) are unemployed.
an area may signal a need for better employment
programs. The online maps provided allows service However, the majority of people living in poverty are
providers to see precisely who lives in poverty in not in the labour force, with people of retirement
local communities. age (over 65) only accounting for about a quarter
of these. There is a very large group of people living
Across Victoria, women are more likely to in poverty who are under the age of 65, and are
experience poverty than men, and women account neither working nor unemployed.
for a majority of adults (over 15) living in poverty.
These people may be studying, caring for children,
However, the difference was not large, with or caring for relatives with disabilities or who are
women’s poverty rates only a few percentage ageing. Again, there was significant local divergence
points higher than men’s. There are local differences in employment patterns, with some areas featuring
in the gender composition of poverty, with men higher proportions of people working among people
predominating in some areas, especially around living in poverty, while others had higher levels of
inner Melbourne. unemployment, or being outside the labour force.
Together, children, young people, and older people We find a majority of the people living in poverty
over the age of 65 account for a slight majority of have a mortgage or are renting in the private
Victorians living in poverty, outnumbering those of market. Both these tenures are fairly risky for people
prime working age (25-64). The age composition of in poverty. An increase in interest rates could push
poverty can vary widely in local communities, often those with a mortgage out of their homes. Rent
reflecting local demographics. increases could adversely affect areas with a large
proportion of renters.
For instance, the outer suburbs of Melbourne tend
to have a high proportion of children, retirement While public housing tenants have high rates of
communities tend to have a higher proportion of poverty, they only represent a small proportion of
older people, and suburbs near tertiary education Victoria’s impoverished population. Less than 10%
institutions often have higher prevalence of young of people living in poverty are in public housing.
people among their impoverished populations.
More than 1 in 3 people living in poverty have a
Many people living in poverty lived in couple disability. People with a disability are more likely
or single parent families. Over half of people to live in poverty than other Victorians. People
experiencing poverty live in families with children. with a disability are particularly prevalent among
the impoverished population in regional Victoria,
As with age, the prevalence of family types representing 41.4% of those living in poverty.
often reflects local community demographics,
for instance, with high proportions of people Looking at our statistics, a common picture of
experiencing poverty living in families with poverty is a family with children and with at least
dependent children in the outer suburbs of one person in the household not in the labour force,
Melbourne. and renting or paying a mortgage.
40
While this picture has been built up looking at each
dimension, we can calculate that 23% of people
living in poverty fit this profile. This large group lives
a precarious existence – they subsist on one low
wage or income support, have high housing costs,
and care for children at the same time.
For governments, community planners and service
providers, a major implication is many of those in
poverty have a mortgage or are paying rent. This
has implications when interest rates or rents start
rising, as poverty will likely grow as more families fall
below the after-housing poverty line.
This analysis allows us, for the first time, to
understand how the demographics of poverty
changes depending on the local area.
Poverty looks different in different places, and we
cannot adopt a one-size-fits-all approach to tackling
poverty. Because the people experiencing poverty
are different, reducing poverty lends itself to place-
based approaches, which meet the needs of the
local experience of poverty, and examine and solve
the particular issues contributing to poverty in
different places.
Children born into poverty face extra challenges Is it fair that Aboriginal Victorians are twice
to reaching their full potential. Children growing up as likely to live in poverty as others?
in poverty have worse health outcomes (Spencer,
2018), do worse at school (Hair, Hanson, Wolfe, & Should children experience poverty more than any
Pollak, 2015), and have lower incomes as adults other age group?
(Duncan, Ziol-Guest, & Kalil, 2010). How well is our jobs market working when more
This imposes a cost on society. Poorer health than a quarter of people living in poverty have a job?
means more health spending, poorer educational Why do some places have far higher poverty levels
outcomes mean fewer employment opportunities, than others?
and lower incomes mean lower consumer spending
and a weaker economy. High poverty rates entrench Answering these questions helps guide us toward
continued poverty in the next generation. solutions to create a fairer, more equal Victoria. By
aiming for a Victoria without poverty, we can help
Some people are disproportionately exposed to every Victorian reach their potential.
poverty. This unmasks inequality in our society, and
begs important questions about the kind of society
we want, such as:
42
References
poverty (rounded
jobs (full-time or
owner-occupied
(outright or with
People living in
people living in
in families with
to nearest 100)
Older people
People living
a mortgage)7
Government
Poverty rate
People with
People with
(aged 65+)7
dependent
Number of
part-time)7
disability6
children7
Women6
housing
Local
area
44
poverty (rounded
jobs (full-time or
owner-occupied
(outright or with
People living in
people living in
in families with
to nearest 100)
Older people
People living
a mortgage)7
Government
Poverty rate
People with
People with
(aged 65+)7
dependent
Number of
part-time)7
disability6
children7
Women6
housing
Local
area
Greater Dandenong 30,000 21% 55% 12% 29% 18% 58% 79%
Greater Geelong 28,400 14% 53% 15% 46% 26% 46% 48%
Greater 7,800 15% 54% 13% 43% 27% 53% 43%
Shepparton
Hepburn 1,800 14% 56% 17% 46% 26% 60% 52%
Hindmarsh 500 10% 52% 14% 42% 31% 80% 32%
Hobsons Bay 10,400 13% 56% 17% 32% 21% 53% 53%
Horsham 2,400 14% 52% 13% 45% 32% 52% 40%
Hume 38,500 22% 58% 9% 27% 20% 66% 78%
Indigo 1,500 11% 52% 20% 45% 29% 65% 37%
Kingston 16,700 12% 56% 19% 31% 27% 56% 51%
Knox 17,200 12% 57% 14% 29% 28% 63% 52%
Latrobe 9,400 15% 53% 12% 42% 24% 47% 42%
Loddon 800 14% 54% 18% 48% 24% 79% 39%
Macedon Ranges 4,500 11% 55% 15% 34% 29% 62% 48%
Manningham 14,300 14% 57% 19% 28% 26% 66% 63%
Mansfield 800 11% 51% 24% 46% 30% 63% 31%
Maribyrnong 12,000 17% 53% 14% 31% 20% 40% 59%
Maroondah 12,000 12% 57% 16% 29% 26% 55% 50%
Melbourne 25,100 25% 48% 10% 21% 16% 25% 102%
Melton 20,300 17% 59% 7% 25% 26% 65% 68%
Mildura 7,400 16% 54% 13% 45% 27% 48% 48%
Mitchell 4,900 14% 55% 11% 36% 29% 59% 54%
Moira 3,600 15% 52% 17% 44% 29% 60% 46%
Monash 26,600 16% 55% 17% 26% 22% 55% 66%
Moonee Valley 12,800 12% 55% 19% 33% 22% 45% 52%
Moorabool 3,700 13% 56% 13% 36% 25% 58% 53%
Moreland 21,800 15% 52% 17% 28% 22% 47% 59%
Mornington 18,000 13% 58% 20% 34% 24% 54% 57%
Peninsula
Mount Alexander 2,200 14% 56% 18% 45% 24% 57% 41%
Moyne 1,800 13% 51% 17% 43% 30% 63% 44%
Murrindindi 1,700 15% 56% 16% 44% 30% 66% 59%
Nillumbik 4,700 8% 61% 13% 28% 38% 74% 46%
45
poverty (rounded
jobs (full-time or
owner-occupied
(outright or with
People living in
people living in
in families with
to nearest 100)
Older people
People living
a mortgage)7
Poverty rate
government
People with
People with
(aged 65+)7
dependent
Number of
part-time)7
disability6
children7
Women6
housing
Local
area