With rising expenses hitting households across Australia from all corners, few are spared from the ongoing pressure and single parents are especially feeling the pinch.
After being divorced from her partner of 20 years, Mary* had to learn how to navigate parenthood on her own while managing the household finances on a single income.
"If you looked at my life, from the outside, you'll go, 'nice house, nice job'," she says, having secured a small home on the outskirts of the city in her 50s.
"But you know that analogy of the swan gliding across the water, underneath its little legs are going a million miles an hour — that's me.
"From the outside, look like I've got it all together. But really, I don't," says the mother to a teenage son.
According to ABS census data released in June, the number of lone parent households has grown since the last survey conducted in 2016.
There are roughly 1 million people in Australia single-handedly supporting a dependent — and four out of five are women.
About 300,000 single mothers, one-third of the single parent population, are living near or below the poverty line, says Terese Edwards, CEO of the National Council of Single Mothers and their Children (NCSMC).
"In the last 10 years, about 30 per cent of single mums have lived in poverty and we haven't switched the dial," she says.
Interest rate rises amid rising costs driving anxiety
Melbourne Institute research estimates that the poverty line for a single parent with one child who is working sits at $791.62 a week, inclusive of housing costs.
According to Professor Wilkinson, who updates the figure regularly, the poverty line "puts a spotlight on those groups in the community" really experiencing severe hardship.
However, in reality, even the middle class are barely holding on as the cost of living continues to fluctuate on many fronts and some experts are calling for a better measure of poverty.
Mary earns as much as a typical Australian does on average — $63,000 per annum before tax.
But supporting two people on roughly $1,050 a week after tax still feels like a stretch even though that figure is about 30 per cent above the poverty line.
On top of increased daily expenses, she's also juggling monthly mortgage payments which has risen multiple times.
Mary had taken on a loan with a variable rate, after being assured by her broker that her payments would be manageable.
While she is thankful that her broker had factored in rate rises, the uncertainty still stresses her out.
Especially since the RBA has already announced rate rises seven times within the year, and she still has 30 more years on her term.
Those with mortgages are "especially anxious about what the future holds", regardless of whether they can afford to meet the increased payments now, says Ms Shroot.
And while many grapple with the increased cost of mortgages, rent, utilities and food, the organisation has also been hearing from people who have had a change in circumstance.
"Everyone is stressed at the moment, but there is added stress when you are the person who is solely responsible for making sure there's enough money," says Mrs Shroot.
Tina* came off a fixed interest rate on her mortgage in September and is now paying more than she can handle on a variable rate.
Going from 2.19 per cent to 5.29 per cent on her loan, her mortgage payments now take up 68 per cent of her main income as she makes $35,000 as a teacher aide specialist.
Living in a body corporate property also means she must account for rates and levies on top of her mortgage, and that’s an extra $130 a week.
Tina, who has two children aged nine and 11, splits parenting responsibilities with her ex-partner but she has care of them for 12 out of 14 nights.
Even though she gets child support payments, she still feels the financial pressure from having enough to pay the bills.
Tina says, “My anxiety’s through the roof – I get scared if I get sick or if the kids get sick.
“If this was just for one year, I'd be okay because you could suck it up to one year but this is like forever now so that's changed everything. “
How are single parents coping?
NCSMC CEO Terese Edwards says, “There's a lot of different forces that come together in a sole parent family, and they're not very kind at the moment.”
Even child support payments don't always provide security says Ms Edwards, pointing out that they “can not be paid, or paid sporadically or partially”.
Factoring this with the economic uncertainty drove Tina to take up multiple jobs at the height of her financial worry.
“I had three jobs for about two months. I was getting very anxious, irritable, and angry so I gave away [one of my jobs],” she says.
She had wanted to expand her income to support her children's recreational activities.
“I did it with the expectation of earning more and being able to take my son to football or let my daughter travel, not with the expectation of interest rates going up as high as they did,” she says.
"I can cut back on the kids activities but I'd rather work harder because this is what shapes them — it's so important for their growth and lifelong skills."
Ms Shroot says the National Debt Helpline has also seen an increase in uninsured car accidents, among other unforeseen circumstances.
"As people's budgets become tighter, we find that one of the first things people cut is their insurances," she says.
And that's exactly what Chloe* did.
As a business analyst, Chloe makes $98,000 a year before tax but being the sole carer to two young children since birth makes all the difference.
Her monthly repayments on her mortgage have gone up by $700 since she locked in a loan on a variable rate in April so she took drastic measures to stay on top of payments.
“I’ve taken my car insurance from full comprehensive to third party and made sure that my home insurance is like at the base minimum,” says Chloe.
“I'm not sure how I'm going to make payments because the loan was given to me based off my income, but it keeps rising and my income doesn't.”
She says, “I feel privileged because I am on quite a high income, but my income equates to two low-income parents”.
With mortgage payments now eating into half of her take-home wage, she says, “There’s no savings – I’ve got literally like no capacity to even save $2 every month.”
Her health needs have also taken a back seat.
“I can’t get my diagnostic tests done [for an ongoing chronic health condition]. I can't afford the nutritionist advice, and the alternative therapies to try and get my condition under wraps.”
“Being a single parent is not always easy, so it is important to keep on top of my mental health and have regular psychology visits, but I'm going to have to stop those now because I can't afford them,” she said.
Is there enough help for single parents?
While government welfare is designed to support single parents, the earning threshold had made financial stability unattainable for some.
The earning threshold is how much you can earn before it affects welfare payments.
Tina managed to bring her annual income up from $35,000 to $51,000 by taking on more jobs, but that meant losing access to healthcare benefits and the electricity rebate.
“I feel like we were punished, the ones working to give your kids the extra instead of sacrificing everything and just staying on the lower wage and on the full Centrelink benefits.”
Chloe, who currently earns almost twice as much as Tina does, is also keen to take up extra work to stay afloat.
But she is weighing up the added cost of childcare and transport against potentially losing more of her support payments.
She says, “I'm kind of stuck like at the moment – do I go up higher and get taxed more [when I already] can't afford private health insurance?"
Single mothers advocate Ms Edwards is calling for the earning threshold to be reviewed, seeing it as a “prohibitive for work”.
“There is so much fear about losing an income support … and it can actually cost you more money to participate in the workforce than what you receive,” she says.
Also pushing for more efforts to address poverty among single mothers, she says, “We don't get the best of kids when they have had a childhood full of poverty".
Chloe who had fought hard to escape poverty growing up now feels demoralised to be teetering on that life again and wishes for better support.
"I never wanted to be a single parent and have this kind of hardship and have to let my children go through this.
“The only thing keeping me going is my kids, but the fear of losing everything for them is debilitating.”
So what help is there for single parents?
The National Debt Helpline offers free, independent, and confidential financial advice.
The site also offers a Live Chat service where you can chat with a financial counsellor anonymously.
Government assistance is also available, but it differs between states and territories so it's best to check your local government websites for a detailed list of services.
Victoria is the only state to offer specialised help to single mothers through a service called Council of Single Mothers and their Children.
Ms Edwards hopes for more states to take after Victoria and offer specialised services for single mothers as it brings “a level of comfort" to the community.
The government has also pledged to childcare more affordable for more than a million families.
So, parents can expect to save more on childcare as the subsidy rates will increase from July next year.
Even if you don't think you'll qualify for any help, Ms Shroot says it's worth having a look online because help can take different forms.
She says, "You might be entitled to a concession card or a healthcare card and [that] might open the door to other discounts [and savings],"
"Sometimes you need to apply to find out if you qualify for anything."
Victims of family violence are also eligible for additional financial assistance and grants.
Here are some of the main ones available across the country. Click on the links below to jump between sections.
- Parenting Payment
- Family Tax Benefit (FTB)
- Child Care Subsidy
- Single Income Family Supplement
- Rent Assistance
- Family Home Guarantee
Parenting Payment
What can you get?
- Fortnightly payments of up to $915.40
Who can get it?
- Be the principal carer for a child under 8
- Must be an Australian resident
- Not have claimed before the birth of the child
- Meet the assets test ($280,000 for home owner and $504,500 for non-home owner
- Be under the income limits ($2536.60 a fortnight)
Family Tax Benefit (FTB)
What can you get?
- Fortnightly payments of up to $257.46 for each eligible child (FTB A)
- A one-off payment of up to $817.60 at the end of the 2022-23 financial year (FTB A supplement)
- Fortnightly payments of up to $168.28, depending on the age of the youngest child (FTB B)
- A one-off payment of up to $397.85 at the end of the 2022-23 financial year (FTB B supplement)
Who can get it?
- Have a dependent child or full time secondary student aged 16 to 19 who isn't getting a pension, payment or benefit like Youth Allowance
- Care for the child for at least 35% of the time
- Meet an income test
Child Care Subsidy
What can you get?
- Get between 20 per cent to 85 per cent discount off child care payments, depending on income bracket, child care service and level of activity
Who can get it?
- Care for a child aged 13 or younger who's not attending secondary school, unless an exemption applies
- Use an approved child care service
- Be responsible for paying the child care fees
- Meet residency and immunisation requirements
Single Income Family Supplement
What can you get?
- Annual payment of up to $300
Who can get it?
- Have been eligible for Single Income Family Supplement since 30 June 2017
- Care for an eligible child
- Have one main income earner with a taxable income between $68,000 and $150,000
- Not have a second income earner with a taxable income above $18,000
Rent Assistance
What can you get?
- Fortnightly payment of up to $201.32, depending on number of children
Who can get it?
- Be paying for either rent, fees in a retirement village, lodging, board and lodging, site or mooring fees
Family Home Guarantee
What can you get?
- Be able to purchase a home with as little as 2 per cent deposit without paying Lenders Mortgage Insurance
Who can get it?
- Be a single parent with at least one dependent child
- Be an Australian citizen at the time of entering the loan
- Be at least 18 years of age
- Be earning no more than $125,000 per year
- Be intending to be owner-occupier of the purchased property
- Do not currently own any property
*5,000 places are available between 1 July 2022 - 30 June 2023
People in dire need of help can also turn to emergency relief from food banks or clothing banks.
Ms Shroot urges people to seek professional help or call the National Debt Helpline to help improve their financial situation, especially those living from paycheck to paycheck.
"No two situations are the same and the wealth of information out there can be confusing so it can be really helpful to talk to someone," she says.
*Names changed for privacy
