Posted: 2022-10-19 21:42:22

Tony Konjarski lives in his own home, but he can't afford to maintain it.

The 57-year-old lives with rheumatoid arthritis, is partially blind and has chronic back problems.

He inherited his home from his late father, who he lived with, but it needs some major repairs.

He can work 15 hours a week as a casual relief cleaner and receives some welfare support, but it's not enough to cover his medical expenses, let alone maintenance on his home. 

"Unfortunately I've got no water coming in at all," he said about the taps in his bath.

"Same as the shower up behind as well. For me to have a shower, I usually go down where I swim locally and use the facilities there."

Mr Konjarski is one of the millions of Australians living below the poverty line.

Experts say it would be easy to make lives like Mr Konjarski's less financially stressful because it's not that complicated.

How do we measure poverty?

Surprisingly, Australia has no official method for measuring poverty.

Researchers have to use a range of different "poverty lines" to try to estimate how many people are living in stressed financial circumstances.

Different methods produce different results, but they all routinely estimate that millions of Australians are currently living in poverty.

One of the most famous measurements is the Henderson poverty line.

It traces its origins to ground-breaking work in the mid-1960s when researchers at Melbourne University made the first serious attempt to estimate the extent of poverty in Australia.

Henderson Poverty Lines June quarter 2022
According to the most recent Henderson poverty lines, the poverty line for a single person is $616.62 a week (including housing).(Source: "Poverty Lines: Australia," Melbourne Institute Applied Economic & Social Research, June quarter 2022)

The research was led by Professor Ronald Henderson and surveys were taken of the living conditions in the homes of Melbourne.

Using a "poverty line" based on the same income as the basic wage plus child endowment payments, for a family with two adults and two children, the researchers estimated one in 16 of Melbourne's population was living in poverty in 1966.

They thought that was a conservative estimate. 

Their research led to growing calls for a national inquiry into the problem, and a Commission of Inquiry into Poverty was eventually established in August 1972, chaired by Professor Henderson.

"It was very pivotal in producing the modern welfare state that we have," Professor Roger Wilkins from Melbourne University said.

Professor Wilkins is responsible for updating the Henderson Poverty Line every quarter, to account for changes in the economy.

"We can really attribute a number of the income support payments that came about in the '70s and beyond, they really had their origins in the measurement of poverty that Henderson pioneered," he said. 

"It put the spotlight on those groups in the community that were really experiencing severe hardship."

According to the most recent Henderson poverty lines, the poverty line for a single person, who is in the workforce, is $616.62 a week (including housing).

For a single parent with one child who is working, it is $791.62 a week (including housing).

Professor Roger Wilkins
Professor Roger Wilkins says poverty lines, however you measure them, provide a starting point for further analysis(ABC News: Simon Tucci)

A different way of measuring the poverty line

But there is another common way to measure the poverty line.

According to this method, you're considered to be living in poverty if your weekly income is less than half of the median income.

The median refers to the income sitting in the middle of the income distribution.

Half of the households in Australia have an income higher than that figure, and half have an income lower.

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