Affordability Crisis Deepens: Only One in Five Low-Income Households in Queensland Can Afford a Basic Standard of Living, Report Finds
Most low-income households in Queensland are struggling to meet the costs of a basic standard of living, facing intense financial stress and high vulnerability to indebtedness, according to a critical new analysis released by the Queensland Council of Social Service (QCOSS).
The “QCOSS Living Affordability in Queensland 2025” report modeled five typical low-income households and found that only one of these five households was able to meet a basic standard of living. The findings highlight that all five modeled households are highly vulnerable to financial shocks and indebtedness, lacking sufficient income to cover unplanned expenses or emergencies because the vast proportion of their earnings is already allocated to essential costs.
Four out of the five households analyzed were found to be in a weekly budget deficit, with shortfalls ranging from $17 to more than $227 per week. These households included a single adult on JobSeeker, a single student, a single parent with two children, and a couple with two children. Families with children faced compounding pressures and the largest deficits, driven primarily by escalating rent and multiple expenses rising faster than their income or government support payments.
Housing Costs Driving Financial Distress
Housing affordability emerged as the most significant driver of financial stress. Housing costs were the single highest expenditure for every modeled household. All households were spending between 36 and 48 per cent of their income on housing, which is far above the accepted benchmark of 30 per cent considered affordable. Many low-income renters are paying more than half their income toward rent, exacerbated by a crisis in housing availability and affordability that has left tens of thousands waiting for social housing.
Beyond housing, rising electricity bills are adding pressure to already struggling households. Energy prices are expected to continue climbing, and many households on hardship plans feel pressured to resolve arrears rather than meeting other essential costs.
Neglecting Health and Skipping Meals
The relentless cost-of-living pressure is forcing Queenslanders to make difficult and damaging trade-offs. The report emphasizes that households are increasingly neglecting their health needs due to out-of-pocket costs. Falling bulk-billing rates and rising out-of-pocket expenses mean that low-income Queenslanders are delaying or forgoing medical and dental care in order to prioritize housing, food, and debt repayments, leading to long-term consequences for health equity.
Food insecurity is also rising. Households are cutting corners, skipping meals, and reducing food quality to feed themselves and prioritize other essentials like medication. Food affordability received the highest number of responses as a cost of living issue, with households reporting significant deprivations and buying food of lower nutritional value.
Call for Targeted Government Support
While existing cost of living relief measures provided by federal and state governments play a critical role in supporting these households, the report noted that all modeled households experienced a decrease in government supports year on year.
The report concludes that more targeted and sustained support is required to ensure Queenslanders on low incomes do not live in poverty and to lift them out of their substantial budget deficits.
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