More Western Australians are falling into financial hardship, new data in the WACOSS 2024 Cost of Living Report reveals.


More Western Australians are falling into financial hardship, new data in the WA Council of Social Service (WACOSS) 2024 Cost of Living Report reveals.
The WACOSS report found that even households with two incomes are struggling to afford a reasonable standard of living and are unable to make ends meet due to rapidly increasing living costs.
The average employed two-parent family does not have enough to cover their basic living costs, the report showed, with weekly expenses exceeding their income by $60.77. For single-parent families, weekly expenditure surpasses their income by around $94.12.
Unemployed singles are teetering on the edge, with their basic living costs just breaking even with their weekly income. JobSeeker, which was increased in September 2023, still fell short of what was needed for people to cover the basic necessities.
“The economy should serve the people, not the other way around. Significant portions of our community are being left behind while our economy is booming,” WACOSS chief executive officer Louise Giolitto said in a statement.
“In the short term, improving outcomes for households on low income requires the state government to invest in targeted cost of living relief that directly relieves pressure on the weekly budget.
“This includes supports that significantly lower the cost of essential items – such as housing, transport, food and utilities – and ensuring that support initiatives are accessible, appropriate and meaningful.”
The Financial Wellbeing Collective – WA’s largest service provider network of financial hardship programs which is partnered with Anglicare WA – has found that financial counselling clients are facing increased costs and more debt.
Households on middle incomes are relying on emergency relief services as a last resort. Cost of living is now the main reason for hardship in the Financial Wellbeing Collective's client cohort, whereas five years ago it was unemployment, debt, or illness.
“Rising costs across the board – from utilities, to food, healthcare and, of course, housing – continue to have significant impacts for our clients,” General Manager Helena Jakupovic explained.

The Financial Wellbeing Collective supported over 29,000 Western Australians last financial year.
FWC financial counselling clients are, on average, operating on a $112 fortnightly household budget deficit. This average fortnightly deficit was sitting at $74 in 2023.
“Cost of living is causing spiraling debt for our clients, which will continue to perpetuate their experiences of hardship for some time,” Ms Jakupovic said.
The average fortnightly debt repayment has increased by 51 per cent in the last year – now sitting at $480. “With growing debt and no end in sight for these cost pressures, this leaves our clients in a state of escalating desperation that has detrimental impacts on mental health and wellbeing,” she added.
In 2024, significant increases in housing and transport costs have placed more and more WA households under extreme financial pressure. While inflation is cooling, prices remain at record highs and have not dropped to pre-crisis levels. As a result, waged families are increasingly seeking support.
The biggest increase in employed clients needing hardship support has been through the FWC’s Emergency Relief and Food Access Service.

Many working Western Australians are relying on Foodbank to make ends meet.
“As cost of living makes hardship more common, we are experiencing an emergence of working families needing hardship assistance for the first time,” Ms Jakupovic said.
“In the last three years we have had an 111 per cent increase in employed clients reaching out for emergency relief. We are talking about working Western Australians who are struggling to put food on the table.”
Housing costs are placing significant pressure on the household budgets of private renters. “Accommodation costs are the largest portion of our clients’ expenditure, growing significantly in the last few years,” she added.
“On average, 43 per cent of our financial counselling clients’ income goes to rent or mortgage, up from 32 per cent in 2021. Housing stress kicks in at 30 per cent.
“The impact of high rent and mortgage repayments leaves little money to afford other life necessities such as food, medical care and transport costs. Our clients are making very tough decision every day to simply keep a roof over their heads.”
With grocery, utility and housing costs continuing to rise, it is becoming harder for households, especially those on lower incomes, to absorb the increases. As a result, people across more demographics are falling into financial hardship.

With rising costs, many people in Perth and regional WA are struggling to put food on the table and keep a roof over their heads.
The 2024 Foodbank Hunger Report highlighted that households were cutting back on purchasing groceries, especially dairy, meat, fresh produce, cleaning and personal items. They are also deferring payments by putting more on credit cards or buy now, pay later options, creating a cycle of debt.
“Approximately a third of referral cards we’ve issued over the last few months have been to people with jobs,” Foodbank WA CEO Kate O’Hara explained. “The vast majority of our cardholders are now on incomes up to $70,000, and low-income earners are presenting more often.”
Nearly all of Foodbank’s cardholders have homes and are affected by the cost of housing, whether they are renting or paying off a mortgage.
The 2024 Foodbank Hunger Report highlighted that 48 per cent of households with an income less than $30,000 are food insecure, while 34 per cent are severely food insecure and are having to miss meals or sometimes go whole days without eating.
Ms O’Hara believes renewed policies that may help address the financial distress caused by increased living costs, such as increasing welfare payments, can help people in these vulnerable situations.
“Foodbank WA supports the Raise the Rate campaign and calls on the Government to increase support to ensure no one in Australia goes hungry,” Ms O’Hara said.