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Material Deprivation in Australia: A Multidimensional Approach to Poverty Measurement 50 Years After Henderson

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  • Yuvisthi Naidoo
  • Ciara Smyth

Abstract

This article examines poverty through a material deprivation lens, drawing on three waves (2014, 2018 and 2022) of the Household, Income and Labour Dynamics in Australia (HILDA) Survey. It presents a detailed analysis of items considered essential and compares deprivation rates for these items among the general population and working‐age income support recipient households. The findings show that income support recipient households experience deprivation rates approximately four times higher across most essential items compared to the general population. Analysis of the incidence of multiple deprivation alongside income‐based poverty reveals that income support recipient households not classified as living in income poverty experience higher material deprivation rates than the general population classified as living in income poverty. The low overlap between income poverty and material deprivation underscores the need for a multidimensional approach to poverty measurement in Australia, particularly in the context of a prolonged cost‐of‐living crisis. By capturing those who are missing out despite not necessarily being classified as living in income poverty, material deprivation research deepens understanding of social and economic disadvantage and offers valuable guidance for targeted policy intervention. The findings of significant deprivation among households reliant on income support provide further evidence that Australian income support payments are abysmally inadequate.

Suggested Citation

  • Yuvisthi Naidoo & Ciara Smyth, 2025. "Material Deprivation in Australia: A Multidimensional Approach to Poverty Measurement 50 Years After Henderson," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 58(S1), pages 58-71, August.
    • Handle: RePEc:bla:ausecr:v:58:y:2025:i:s1:p:s58-s71
    DOI: 10.1111/1467-8462.70024
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    References listed on IDEAS

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    1. Peter Saunders & Yuvisthi Naidoo & Melissa Wong, 2022. "Comparing the Monetary and Living Standards Approaches to Poverty Using the Australian Experience," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(3), pages 1365-1385, August.
    2. Peter Saunders & Yuvisthi Naidoo, 2018. "Mapping the Australian Poverty Profile: A Multidimensional Deprivation Approach," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(3), pages 336-350, September.
    3. Steve McKay, 2004. "Poverty or preference: what do 'consensual deprivation indicators' really mean?," Fiscal Studies, Institute for Fiscal Studies, vol. 25(2), pages 201-223, June.
    4. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858.
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