Rising Cost of Living Strains Australian Families' Education Budgets

The rising cost of living in Australia is significantly affecting families' ability to afford essential educational items for their children. A recent survey conducted by The Smith Family revealed that 90% of lower-income families are concerned about affording back-to-school necessities. This marks the third consecutive year where over 80% of families reported financial difficulties in purchasing school items. The survey included over 1,100 parents and caregivers, highlighting a growing trend of financial strain exacerbated by inflation.

The Guardian

Laura, a single mother of four, exemplifies the struggles faced by many families. She describes a constant battle between affording food and paying bills, stating, “Some weeks we’re good, some weeks we’re down and I have to go into the community and ask for vouchers.” The Smith Family's report aligns with findings from Curtin University, which indicated that an additional 102,000 children fell into poverty during and after the COVID-19 pandemic, raising the national child poverty rate from 15% in 2023 to 15.6% in 2025.

The Guardian

The implications of rising child poverty are profound. Doug Taylor, CEO of The Smith Family, warns that if current trends continue, over one million children in Australia could be living in poverty within the next year. He emphasizes the detrimental impact on education, noting that disadvantaged students can fall four to five years behind their peers in literacy and numeracy by Year 9. Taylor states, “For low-income families, they feel those cost of living impacts most adversely.”

The Guardian

The survey also revealed that 56% of parents believe their children will miss out on necessary digital devices due to financial constraints, while 40% fear their children will miss educational activities outside of school. This digital divide is significant, as 44% of students—approximately 400,000—lack internet access at home, hindering their educational opportunities.

The Guardian

Critics argue that the existing support systems are insufficient to address the growing needs of disadvantaged families. While The Smith Family has distributed 14,000 laptops over the past seven years, the gap in digital inclusion remains a pressing issue. Taylor advocates for expanding access to extracurricular activities, such as tutoring and catch-up classes, which are increasingly available to middle and high-income families but often out of reach for those in lower-income brackets.

The Guardian

Laura highlights the challenges of affording uniforms and shoes for her children, stating that their continuous growth adds to the financial burden. She notes that without support from organizations like The Smith Family, her children would struggle to keep up with school requirements, as much of their homework and communication is now online.

The Guardian

In response to the survey findings, Doug Taylor emphasized the need for urgent action to address the financial pressures faced by families. He stated, “The burden for a parent or carer to start the school year feeling the pressure of having to cut corners in so many areas is a pressure that no family should really face.”

The Guardian

• “Some weeks we’re good, some weeks we’re down and I have to go into the community and ask for vouchers,” — Laura, Single Mother

The Guardian

• “Research tells us that by Year 9 a student who experiences disadvantage can be four to five years behind their peers in literacy and numeracy,” — Doug Taylor, CEO of The Smith Family

The Guardian

• “The burden for a parent or carer to start the school year feeling the pressure of having to cut corners in so many areas is a pressure that no family should really face.” — Doug Taylor, CEO of The Smith Family

The Guardian

The ongoing financial challenges faced by families in Australia underscore the urgent need for comprehensive support systems to ensure that all children have equal access to educational resources and opportunities.

The Guardian