PRICE OF SURVIVAL REPORT: Deepening cost-of-living crisis taking a severe toll on families say financial counsellors
ONLINE BRIEFING for The Price of Survival REPORT
A new report released today the Price of Survival from Consumer Action Law Centre reveals a bleak and troubling picture of more Australian families struggling to afford the basics each day.
“Our financial counsellors on the National Debt Helpline are receiving more calls and contacts than ever before and I am really concerned that a growing number – 38% of clients – calling us for help, are either working or self-employed,” said Consumer Action Law Centre CEO, Stephanie Tonkin.
Consumer Action runs the National Debt Helpline in Victoria and online chat for Victoria and Queensland. In 2025-26 they helped 13,451 people with their debts an increase of 13% for calls and 4% for chat consults from the previous year.
” Our financial counsellors are hearing from people stretched beyond their limits, with rising interest rates making mortgage payments their chief concern.
“Wages are not keeping pace with prices -since 2020 working households paying a mortgage have seen their income go up 20%, while living costs have risen more than 33%- no wonder people are feeling stressed,” Ms Tonkin said.
People are being forced to use credit as a ‘survival tool’: 19% of people had credit card debt and 15% had personal loan debt. People with very different lives and incomes are now being forced to resort to credit to cover the basics.
The Australian Taxation Office (ATO) is failing people with tax debts: Almost 1 in 5 people almost 1,500 Victorians called the National Debt Helpline about ATO debt in 2025-26 – 18% of all callers, with a typical debt $5,000- $20,000.
This has spiked up from just 3% of all callers in 2020-21. The ATO’s rigid approach is causing serious stress and blocking financial counsellors from supporting people to make realistic plans to pay tax debt.
“In our first Cost-of-Living report in March 2024, ATO debt wasn’t even in the top ten major issues but now it’s number three on the Helpline,” said Tonkin.
“A shining light in the deep financial stress and anxiety found on our frontlines is the care and skill our financial counsellors show supporting hundreds of clients each week.
“Financial counsellors equip people with the knowledge tools and confidence to navigate their debts and cope with financial stress. More than 8 in 10 people felt empowered after speaking with a financial counsellor and 7 in 10 people said the service made a substantive difference to their financial position.”
Quote attributable to Financial Counselling Australia Interim CEO Jane Pires:
Consumer Action’s report reflects what financial counsellors are seeing right across the country. Demand for help is increasing across phone, chat and at face-to-face services. More working Australians are falling behind, and financial counsellors make a real difference. We need greater, sustained investment in financial counselling, so no one is left waiting for help when they need it most.”
Quote attributable to Zyl Hovenga-Wauchope, CEO of Financial Counselling Victoria:
“Financial counsellors are increasingly hearing from people who never expected to need help: workers, families and small business owners who are struggling to meet the rising cost of everyday essentials. This report highlights both the scale of financial stress facing Victorian households and the vital role financial counsellors play in helping people navigate hardship and rebuild stability.”
ENDS
Media contact: Mark Pearce, mark@consumeraction.org.au Tel: 0413 299 567