The community sector is calling on the ACT government to undertake a review of concessions for low-income households as a new report reveals just how much the cost of living has increased in the capital.
Education, medical and housing costs have experienced the highest increases over the past five years, the ACT Council of Social Service cost of living report shows.
The ACTCOSS report said the increases of more than 20 per cent in these essential goods and services had a disproportionate effect on low-income households in the territory.
The council said there needed to be a broad review of the territory's concession schemes and a review of the ACT's tax system to assessed the fairness of existing levies, fees and charges.
The territory needed to fill the funding gaps from the federal government, the report said.
ACTCOSS is calling for the government to undertake a comprehensive review of the ACT's targeted assistance strategy which was developed in 2012.
The council's chief executive Devin Bowles said the wealth gap in Canberra was growing and low-income households need extra supports.
"While some households have needed to draw down on savings, reduce discretionary spending, or switch to cheaper brands of essentials, those living on the lowest incomes have had to make much harder choices, between turning the heating off or missing rental payments and risking eviction," he said.
"There are thousands of Canberrans who saved for a rainy day, only to have it rain for years. We are witnessing a once-in-a-generation economic shift that will grow the wealth gap and make Canberra a less fair place without decisive action."
The report showed education costs had increased by 26 per cent over the past five years. This takes into consideration pre- and primary education, high school and tertiary education.
Housing costs have increased by 22.8 per cent over the same period and there has been a 22.4 per cent rise in the cost of medical and hospital services.
Food, transport and gas costs have also increased by more than 20 per cent.
As a result of the cost-of-living pressures, community services in the ACT have reported significant increases in demand. Experiences from various services were included in the ACTCOSS report.
Care Financial Counselling had a 17 per cent increase in clients needing support for financial hardship. Care chief executive Carmel Franklin said this included people who had never previously accessed support.
"Housing and utility stress are common themes with people turning to 'buy now pay later' and other high-cost products to cover essential everyday household costs," she said.
"Financial stress is on the rise and is impacting a broader cohort, including people who have not previously required assistance from a support service."
Roundabout Canberra, a children's charity, has recorded a 32 per cent increase in children needing material support this year alone. The organisation helped 4175 children in 2023.
"We have heard many stories of parents waiting until they were on the brink, making choices between paying rent that week or purchasing items for their newborn, or nappies and clothing for their children," Roundabout Canberra social services manager Miranda Phillips said.
"We continued to see families where one or both parents were working, yet it wasn't enough to cover essentials and are having to access support for the first time."
