The cost-of-living crisis in Australia has reached a critical point, as exemplified by the story of Peter, a single father who shared his struggles on the ABC's Q and A program on March 31, 2025. His experience underscores a broader reality for many Australians: even those working full-time and receiving government support are finding it nearly impossible to make ends meet. This crisis, driven by soaring housing costs, stagnant wages, and rising prices for essentials, is not just straining household budgets—it's eroding the quality of life and future prospects for the average Aussie.
Peter's situation is a stark illustration of the crisis's toll. A widower since his wife's death from cancer in August 2024, he works full-time as an orderly and cleaner at a hospital, raising an eight-year-old and a 22-year-old son with dyspraxia, a condition that impairs motor skills and has made traditional education and job opportunities elusive. His older son, who cared for his mother during her illness, now relies on JobSeeker payments but struggles to secure employment due to his lack of work experience and neurological challenges. Peter himself depends on the Family Tax Benefit and support from his parents, yet he still can't cover basic expenses like rent, utilities, food, and petrol. His plea—"How can I survive when I'm working full-time and on the family tax benefit and still struggling to not live beyond my means?"—resonates with countless Australians facing similar financial precarity.
The crisis's roots lie in a toxic mix of economic pressures. Housing, as Grattan Institute CEO Aruna Sathanapally highlighted on the program, is central to the problem. Decades of underinvestment in supply, coupled with high demand from population growth and investor-friendly policies, have driven rents and home prices to unsustainable levels. For someone like Peter, living independently would be untenable; he noted that without his parents' help, rent alone would consume most of his income. This isn't an isolated anecdote—across Australia, rental affordability has hit record lows, with only 0.6% of listings affordable for full-time minimum-wage earners, according to Anglicare's 2024 Rental Affordability Snapshot. Homeownership, once a cornerstone of the "Australian dream," is slipping out of reach for younger generations and low-to-middle-income families.
Beyond housing, the cost of essentials, groceries, utilities, fuel, continues to climb faster than wages or welfare payments. Inflation, though easing to 2.8% by late 2024 (per Commonwealth Bank data), still outpaces income growth for many. Peter's story reflects a broader trend: 41% of Australians reported in 2024 that they were "just getting along" financially, with 28% unable to consistently afford meals or pay rent on time, according to the Scanlon Foundation's social cohesion study. For single parents like Peter, the burden is even heavier, as they juggle childcare, work, and rising costs without a second income to fall back on.
Government responses, as articulated by Industry Minister Ed Husic and Shadow Energy Minister Ted O'Brien on Q and A, reveal the limits of current policy. Husic pointed to Labor's efforts—boosting JobSeeker by over $5,000 annually through indexation and offering free TAFE to upskill workers—but candidly admitted these measures don't fully address the crisis. For Peter's son, whose dyspraxia makes TAFE impractical, such programs offer little relief. O'Brien, representing the Coalition, emphasised a "strong economy" as the solution, arguing it would lower prices and fund services. Yet, this vague promise lacks immediate impact for families like Peter's, who need tangible support now, not aspirational growth years down the line. Both sides are campaigning heavily on cost-of-living relief ahead of the May 3, 2025, federal election—Labor with power rebates, the Coalition with a fuel excise cut—but these measures feel like Band-Aids on a gaping wound.
The human cost is profound. Peter's reliance on his parents and his son's stalled transition to independence highlight a generational squeeze: older Australians prop up their adult children, while the young face a future of delayed milestones—homeownership, family, financial security. This isn't just economic strain; it's a slow unravelling of social cohesion. Mental health is deteriorating under the weight of constant financial stress, with families like Peter's forced to prioritise survival over well-being. His story isn't unique, charities report a surge in working families seeking food aid, and researchers note a deepening child poverty crisis, with 14.5% of Australian kids living below the poverty line in 2022, a figure likely worsened since.
The cost-of-living crisis is "killing the average Aussie" not through literal death but by crushing their aspirations and dignity. Peter's full-time job and government support should, in theory, provide stability, yet he's trapped in a cycle of dependence and despair. Without bold action—massive housing investment, wage growth tied to inflation, or a rethink of welfare for vulnerable groups like single parents and the neurodiverse—this crisis will only deepen.
For now, the average Aussie isn't just struggling; they're being pushed to the brink, one heartbreaking story at a time.
"A single dad's heartbreaking story has exposed the dire reality of life for thousands of Aussies trapped in the country's rolling cost-of-living crisis.
Peter, appearing on the ABC's flagship Q and A program on Monday night, told the panel he was struggling to survive while working full time with two children.
"My wife passed away from cancer last August I am now a single dad with an eight-year-old and 22-year-old," he said.
"The 22-year-old has never had a job as I needed him to take care of his mother while I was at work.
"He is now struggling to find a job.
"He is on JobSeeker, however it just seems to be a tick box to get the payment.
"How can the government help him get a job when it seems no one wants to even give him an interview?
"And how can I survive when I'm working full-time and on the family tax benefit and still struggling to not live beyond my means?"
Peter opened up about his own cost-of-living struggles on the ABC's flagship Q and A program on Monday night. Picture: ABC
Industry Minister Ed Husic appeared shaken by the heart-wrenching story and offered his condolences to Peter, who works as an orderly and cleaner at a hospital.
"One of the first things we did as a government was to lift JobSeeker and the indexation and those changes in this one term will deliver over $5,000," he said.
"For single parents in particular, for women, it will lead to over $7500.
"Do I say that sorts everything out and deals with the issues?
"I'm not going to say that and I'm not going to look you in the eye and say that."
Mr Husic also spruiked the government's free TAFE program, designed to help upskill young Australians to help them find good-paying jobs.
"I appreciate there is a lot of things that have to line up to make life easier but we are starting that process," he said.
"We are fair dinkum about trying to make life easier for people."
Ted O'Brien expressed his sympathy to Peter during the show. Picture: ABC
Peter said his 22-year-old son had dyspraxia, neurological condition that affects fine and gross motor skills.
"He always struggled with school," he said.
"He tried to get into a bridging course at uni. Started. Couldn't do it. That is when we found out about his mother's diagnosis. He struggled to much going to school. Him going to TAFE is not an option."
Peter also said his parents were "helping me out big time" but if he were by himself, his income would not cover rent, electricity, gas, food, petrol and car insurance.
Mr O'Brien said maintaining a "strong economy" was the key means by which government could "help out Australians when they're doing it tough".
"It is a means by which you can pay for health and education and infrastructure and so often when you do hear the Coalition talking about the need for a strong economy, all I can say to you is please know that is also speaking directly to you because we need to get the prices of things down and the stronger the economy we have, the more we can deal with it," he said.
Grattan Institute CEO Aruna Sathanapally said housing failures lay at the heart of Australia's economic problems. Picture: ABC
Cost-of-living issues are expected to dominate the federal election, which runs until May 3.
Prime Minister Anthony Albanese has promised power rebates to ease cost-of-living pressures, while Opposition Leader Peter Dutton has pledged to cut fuel excise from 50.8c a litre to 25.4c for one year, which would lower petrol prices for consumers.
Later in the program, Grattan Institute CEO Aruna Sathanapally said Australia's failure to build enough housing was "at the heart of our economic problems".
"It is an issue that really affects younger Australians and the sense of not seeing a future for themselves because this one thing is proving unsustainable," she said."