Vegemite Index and Cloaks of Invisibility: poverty premiums show why it costs more to be poor

Vegemite Index and Cloaks of Invisibility: poverty premiums show why it costs more to be poor

For this year’s Anti-Poverty Week (13-19 October) the South Australian Council of Social Service is highlighting examples where it literally costs more to be poor – effectively putting a premium on poverty.

Poverty premiums are a problem because they make it harder for people struggling on very low incomes, and harder for people on higher incomes to understand the experience of poverty.

Examples of poverty premiums that SACOSS is highlighting include:

  • The Vegemite Index – as a very Australian example of the extra costs when people can’t afford to buy in bulk.
  • Punishing Penalties – as an example of where flat rate charges or fines (e.g. for general littering) have a disproportionate impact on households with lower incomes
  • Cloaks of Invisibility – where outdated or flawed understandings of who is seen as being in poverty mean some people miss out on concessions and supports available to others on similarly low incomes
  • Low-income Lockouts – where people on very low incomes can’t afford cost-saving technologies and measures
  • Petty Penalties – such as charges that are more likely to be applied to those in poverty, for example, financial institutions and creditors charging fees if payments are rejected because of insufficient funds in an account.

The full poverty premiums report is available via the SACOSS website: sacoss.org.au/poverty-premiums

Quotes attributable to Ross Womersley, SACOSS CEO

We’ve given our poverty premiums quirky names but they represent very real and important challenges for people and households trying to manage on very low incomes.

We have taken Vegemite as an iconic brand to illustrate a broad point about poverty premiums – that if you can only afford to buy small quantities of goods, you end up paying more per unit. The brand has done nothing wrong. It is standard business economics relating to costs of transport, packaging and overheads. But it does highlight the extra costs faced by any households who just don’t have enough in the weekly budget to buy in bulk.

Clearly one of the most important things our federal government can do is to raise income support payments to ensure recipients can cover the basics and put enough food on the table.

And while Vegemite might not be doing anything wrong, the SA Ambulance Service could definitely do better. They really need to update their ideas about who might need support. JobSeeker and Youth Allowance are the lowest social security payments, and yet most people on these payments aren’t eligible for a concession. Any concession available to pensioners should be extended to them. Similarly, we need to recognise that today, having a job (or even several jobs) no longer means that people are not in poverty, so we also need to do better in recognising and supporting people in waged poverty.

Finally, our Punishing Penalties show the disproportionate impact that flat-rate fines and charges have on low-income households. SACOSS has long called for income-based fines, because it is just not fair that people on high-incomes get off with the most trivial consequences while the same fine for the same offence causes significant hardship and might cascade problems for people on the lowest incomes.

Some of the poverty premiums we are highlighting seem like small amounts of money, but these all add up and the cumulative effect simply makes it more difficult for those living in poverty. We are asking that governments at all levels, and relevant companies – in particular utilities and financial institutions – to try to remove poverty premiums in their prices, practices and fees.

Quotes attributable to Jeni Harris, Adelaide mother with lived experience of poverty

There’s only so far that any low-income budget can stretch when even essential items are becoming increasingly expensive. To add poverty premiums on top of this makes it even harder.

I would love to be able to buy items in bulk at better value for money – but for me and many others in similar situations, we simply can’t afford it. If I was to get a littering fine, it would take an enormous chunk out of my income and mean I would have to make awful decisions around what I had to give up in order to pay the fee.

Nobody deserves to suffer from poverty, and these extra costs compound the needless suffering of so many

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MICHELE WACHLA

Michele is an accomplished social services professional with a dual background in Social Work and Business, bringing over 18 years of experience to her work. She has developed a deep understanding of the unique challenges and opportunities within Regional, Rural, and Remote (RRR) environments, particularly in South Australia. Michele is a recognised leader, known for her expertise in designing and implementing place-based initiatives that address the complexities of RRR communities. Her work is underpinned by strategic planning, effective resourcing, and a strong focus on policy review and advocacy to ensure that services remain relevant, equitable, and sustainable. Michele’s commitment to community-centred approaches drives meaningful outcomes, nurturing resilience, and growth across regional South Australia.

KHATIJA THOMAS

DAVE ADAMSON

Dave moved to Australia following a 30-year academic career in the UK. He has since worked in the Community Housing sector and authored the 2016 Towards a National Housing Strategy, and helped to establish the Everybody’s Home campaign. He also researches the interface between poverty and climate change and actively supports the United Nations Sustainable Development Goals. He has worked with government at all levels and has experience of policy development and evaluation. He is co-author of Sustainable Places: Addressing Social Inequality and Environmental Crisis (2022, Routledge). In his spare time he plays and builds guitars.

ROHAN FEEGRADE

Rohan is an experienced and forward-thinking CEO, senior executive and board director with demonstrated expertise across the not-for-profit, private and government sectors. Currently CEO of Lutheran Care, he has proven record for creating substantial organisational, stakeholder and client value, and has extensive experience in strategically positioning organisations for transformational change and growth within the health, disability, education and community service sectors. Rohan is a socially responsible professional, genuinely passionate about creating opportunities for people who live with disadvantage and disability, always acting ethically to serve those he works with and for.

JANE MUSSARED

Jane has worked in for purpose and government health and human service settings throughout her career. In June 2024 she returned to SA and joined the Maggie Beer Foundation as CEO following 20 months based in Canberra as an Advisor to the Federal Minister for Health and Aged Care. Previously she was Chief Executive of COTA SA and before that an executive of ACH Group. Jane served on a range of boards and committees prior to moving to Canberra, including the SACOSS Policy Council until 2022, as chair of the South Australian Circus Centre and as a non-Executive Director with the Maggie Beer Foundation.

NANCY PENNA

Nancy has than 30 years of experience in South Australian community services, and a a unique understanding of the political and social landscape and the issues and opportunities facing South Australia. Currently responsible for the strategic and operational oversight of AnglicareSA’s community services portfolio, she has previously held executive roles in government within child protection and disability, with her executive experience underpinned by her earlier career as a social worker in child protection and youth justice. She is also Chair of the Child and Family Focus South Australia (CAFFSA) Board and most recently on the Housing Security for Older Women Taskforce.

NICOLE CHAPLIN

Nicole is a dedicated and experienced youth support professional, specialising in solutions for disadvantaged young people in South Australia. As CEO of St John’s Youth Services, she oversees innovative programs like youth110 and Foyer Port Adelaide. With over thirty years in the community sector, Nicole has built extensive networks and her expertise spans governance, service delivery, policy development, and partnerships. Recognised with the 2018 AHI Inspirational Leader Award, Nicole is an active participant in housing and homelessness networks. She holds leadership roles in various organisations, including Anglicare Australia’s National Reconciliation Network.

EMMA CROSBY

Emma is a chartered Accountant with more than 15 years experience as a board member, finance and business professional, strategic advisor and company secretary. She has strong values and a passion for enabling and leading organisations to meet its operational and strategic direction through long-term financial sustainability, operational efficiency, innovation, leadership, transformation and partnerships. As Treasurer and Board member at SACOSS, she is committed to successfully leading and making a purposeful impact to the organisation and its stakeholders.

David PANTER

David has worked in health and social care for almost 45 years, over half of which has been as a Chief Executive. In the UK he initially worked in the NHS and more latterly in local government, where he was Chief Executive of Brighton & Hove City Council. In 2004 David was recruited to the South Australian public health system for over 10 years leading reforms including the development of the new Royal Adelaide Hospital. From 2015-2022 David was the Chief Executive of not-for-profit aged care provider ECH. At the end of January 2022 David became the Chief Executive at Minda, SA’s largest provider of services to people living with an intellectual disability.

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