Rent goes out first. After that, we ration everything — fuel, fresh fruit, even phone data.”
“Food is where we bend, but school costs don’t bend. That’s the weekly stress.”
The snapshot: costs moderating, pressures persisting
- Inflation has eased from its 2022–23 peak, but essential costs remain high compared with pre‑pandemic levels, according to the Australian Bureau of Statistics (ABS). Food and non‑alcoholic beverage prices have moderated but are still above the long‑term average; rents have recorded strong annual increases; and electricity bills, while stabilising from 2023 highs, remain elevated compared with 2021.
- Wages growth has improved (per ABS Wage Price Index), but for many households real wages are only just catching up, leaving a multi‑year gap in purchasing power.
- Renters — a group that includes a high share of new migrants — face the sharpest stress. National vacancy rates remain extremely low, and private rents have risen faster than general inflation over the past two years (CoreLogic, Domain). Community services report increased overcrowding and rent arrears.
For multicultural families — particularly new arrivals, international students, temporary visa holders and multigenerational households — the gap between income and essential spending is translating into daily compromises: smaller baskets at the checkout, deferred medical and dental visits, and longer commutes from distant suburbs where housing is relatively cheaper.
“Every bill feels bigger than last year — even when the cents per kilowatt-hour come down a bit, the total is still a shock.”
Housing: the epicentre of stress
- Private rents: Industry data shows annual rent growth has stayed high through 2024, with the tightest conditions in capital-city inner and middle rings. For many families, the only options are smaller dwellings, more housemates, or longer commutes from peri‑urban areas.
- Affordability: Community surveys and Anglicare Australia’s Rental Affordability Snapshot have consistently found that very few rentals are affordable for households on income support, and that affordability for full‑time minimum‑wage earners remains extremely limited in most cities.
- Overcrowding and security: Migrant families report taking on informal subletting arrangements, which can increase vulnerability to exploitation and sudden evictions, especially where language barriers make formal leases harder to obtain.
Policy responses:
- The National Housing Accord targets 1.2 million well‑located homes over five years (from mid‑2024), a pipeline that will take time to translate into supply on the ground.
- The Housing Australia Future Fund and associated programs aim to expand social and affordable housing. State governments are also moving on planning reforms to accelerate medium‑density supply near jobs and transport.
- Commonwealth Rent Assistance maximum rates were lifted in late 2023 and increased again in 2024. This helps some low‑income renters, but does not address the fundamental shortage of affordable rentals.
“Families aren’t asking for luxuries — they’re asking for a lease they can keep for more than 12 months and a commute that doesn’t steal time from their kids.”
Energy: bills off the peak, but still biting
- Default offers: From 1 July 2024, the Australian Energy Regulator reduced the Default Market Offer for many customers in NSW, SA and south‑east QLD, and Victoria’s default offer also fell. That has provided modest relief — but bills remain significantly higher than pre‑2022 levels.
- Rebates: In 2024–25, the Commonwealth is delivering universal energy bill relief to households, with additional state and territory concessions for eligible low‑income customers and seniors. Take‑up among newly arrived migrants can lag where information is not available in community languages or where digital access is limited.
- Renters’ “split incentives”: Many migrant households rent older, less efficient homes. Without control over insulation, appliances or solar, families pay for inefficiency they cannot fix. Advocacy groups argue for standards to improve rental property efficiency and for simplified access to concessions.
Practical tip:
- Use Energy Made Easy (AER) or Victorian Energy Compare to check if you’re on the cheapest plan; many households save by switching. Seek interpreter assistance via community organisations if needed.
Food: sticky prices and tough choices
- Supermarket prices: ABS data shows food inflation has moderated from its 2022–23 peak, but remains above pre‑pandemic norms. Families report “shrinkflation” and fewer specials on staple items.
- Competition and oversight: The ACCC is conducting a year‑long inquiry into supermarket pricing and competition, and the federal government has moved to strengthen the Food and Grocery Code of Conduct following an independent review — steps aimed at improving fairness and transparency in the supply chain.
- Cultural diets and costs: For many South Asian and other multicultural households, specialty ingredients — whether for religious, cultural or dietary reasons — can be comparatively costly, especially outside major hubs. Families report shopping across multiple stores and travelling further for affordable bulk staples like rice, lentils and cooking oil.
“Groceries are where we negotiate with ourselves. We cut back on meat and fruits before we risk the rent.”
How migrant households are coping
- Income juggling: Extra shifts, rideshare and delivery work, and home‑based side businesses supplement primary incomes, but at the cost of family time and rest.
- Multigenerational buffers: Sharing housing and caregiving helps stabilise budgets, but can strain small dwellings and increase overcrowding.
- Community support: Faith and community organisations — from Sikh langar kitchens to multicultural food relief hubs — have stepped up with hot meals and staples, especially in outer‑metro growth corridors.
Where to get help (national and state):
- National Debt Helpline: 1800 007 007 — free financial counselling.
- Tenants’ advice: state‑based Tenants’ Unions for rental rights and disputes.
- Energy rebates and hardship programs: check your state/territory government site; contact your retailer’s hardship team.
- Translating and Interpreting Service (TIS National): 131 450 — ask for your language when contacting services.
What governments are doing — and what communities say is still missing
Recent actions:
- Targeted cost‑of‑living relief in the 2024–25 federal budget: universal energy bill credits; tax changes designed to deliver larger proportional benefits to low and middle incomes; further increase to Commonwealth Rent Assistance maximum rates.
- Housing supply push: National Housing Accord, social and affordable housing investment, and state planning reforms to speed up approvals and diversify dwelling types.
- Market oversight: ACCC inquiry into supermarkets; stronger Food and Grocery Code recommendations; AER oversight of retail energy pricing.
Community priorities:
- Faster, deeper rental reform: longer leases, fair limits on increases, minimum efficiency standards for rentals, and scaled‑up social housing supply.
- Language‑accessible relief: clear, multilingual communication on rebates, tenancy rights and concessions; outreach via multicultural media and community leaders.
- Transport and services: more investment in reliable public transport and local services in growth suburbs where migrant families can still afford to live.
- Skills and income mobility: quicker recognition of overseas qualifications and targeted employment programs to move families beyond low‑wage, insecure work.
“The relief is welcome — but it’s a bridge, not the destination. The destination is secure, affordable homes and fair markets for essentials.”
Bottom line
Cost‑of‑living pressures have shifted from a headline about inflation to a household reality centred on rent, power and food. For Australia’s migrant communities — including many South Asian families — the crunch is specific and structural: rental scarcity, energy inefficiency in older homes, and supermarket bills that don’t fall as quickly as they rose. Relief measures are helping at the margins, but families say durable solutions depend on fairer rentals, more homes near jobs, efficient dwellings, and competitive, transparent markets for essentials.
If you’re feeling this squeeze, you’re not alone — and there is help. Our newsroom will continue to track policy changes, compare rebates and offers, and spotlight community services making a difference. If you have a story, tip or resource to share, we’d like to hear from you.
Sources and references (selected)
- ABS Consumer Price Index; ABS Wage Price Index (latest available releases)
- Australian Energy Regulator (Default Market Offer 2024–25); Victorian Essential Services Commission (Victorian Default Offer 2024–25)
- CoreLogic and Domain rental market reports (2024)
- Anglicare Australia, Rental Affordability Snapshot (2024)
- Australian Government, Budget 2024–25 cost‑of‑living measures (energy bill relief, tax changes, Commonwealth Rent Assistance)
- ACCC, Supermarkets Inquiry (2024–25) and Food & Grocery Code review outcomes
Note: Figures and programs referenced are drawn from official statistics and public reports current to late 2024/early 2025. For localised advice on rebates or tenancy rights, please check your state or territory’s latest guidance.
