More than a quarter of a billion people are headed into extreme levels of poverty this year after the cumulative effects of the pandemic and the rising cost of living, an Oxfram study reveals.
The leading charity has called on the winner of the upcoming federal election to take leadership on the issue and respond to the economic realities driving more Australians to the edge of poverty.
The number of people living on less than $2.55 a day could rise to 860 million people across the globe by the end of this year.
The World Bank says this will reverse two decades of progress.
“Australia’s next government must acknowledge this and show real leadership by responding to these growing challenges with the required level of ambition,” Oxfam Australia chief executive Lyn Morgain said.
Oxfam is calling for the government to tackle the “extreme inequality crisis” by boosting overall aid spending and ensuring the national response to the conflict in Ukraine is covered with new funds rather than aid already allocated to crises in poorer countries.
“The current government’s strategy of pouring billions into massive defence projects will not contribute to the peace, stability and prosperity we all desire for our region,” Ms Morgain said.
Stagnant wage growth continues to apply pressure in Australia with increase in pay packets being outstripped by inflation.
The Australian Council of Trade Unions recently called on the government to lift the minimum wage from $20.33 an hour to $21.35, for the 2.67m employees who rely on the annual wage review for a pay rise.
The Federal Government responded to the rising cost of living and record fuel price hikes in March by splashing $8.6b in tax relief in the federal budget.
The gender wage gap has also widened throughout the pandemic as job loses disproportionately impacted women.
There are 13 million fewer women employed today around the world compared to 2019.
Prime Minister Scott Morrison has used the start of the official campaign to talk up the Coalition’s economic record using low unemployment figures.
Ms Morgain said Australia had an important role to play in an interdependent world.
“It is not enough that our own economy is bouncing back post-lockdowns,” Ms Morgain said.
“Instead, the next Australian government must recognise the huge value in building relationships in our region and beyond through quality, long-term development programs as well as humanitarian assistance where it is needed most.”
