With the financial impacts of COVID-19 still rapidly evolving, SAFCA is aware that recovery from the pandemic will be uneven and that financially vulnerable people will need greater support. Amongst the complex issues our members are seeing is gambling, mental health and domestic and family violence. While the statistics are hard to find to quantify this, we are also concerned about the over-representation of Aboriginal people across all of these issues.  

The rise in gambling is reported in a national study undertaken by the Australian  Gambling Research Centre showing that one in three participants signed up for new betting accounts during COVID-19, and the number who gambled more than four times per week increased from 23% to 32%. Among all gamblers surveyed, 79% were classified as being at risk of, or already experiencing, gambling-related harm. Among young people aged 18-34 years, this number jumped to 90%. 

SAFCA members are seeing a rise in mental health as a complex issue amongst their clients. This need for support is reflected in a report by the Australian Institute of Health and Welfare that shows in the four weeks to 19 September, 2021, Lifeline (nationally) saw several historical record high daily call volumes, and 96,273 calls were offered in total, up 14.1% and 33.1% from the same periods in 2020 and 2019 respectively. It is further reflected in the 10 July 2021 Taking the Pulse of the Nation  survey, which stated that one in five Australians felt depressed or anxious most or all of the time and that 23% of Australians were experiencing financial stress (difficulty paying for essential goods and services). 

SAFCA members are also seeing more people experiencing domestic and family violence. While the rate reported to SAPOL in South Australia increased by approximately 2% in the past 12 months, this does not include those that do not report and our members have provided feedback that this is an increasing issue and one they are concerned needs greater attention. 

In a recent survey, SAFCA members identified housing stress as being their greatest immediate concern when addressing the complex needs of clients. They also identified the need to reach people in the early stages of financial vulnerability to be able to assist them in avoiding the devastating effects of financial hardship. 

SAFCA asserts that a holistic approach is required to enable  the complex needs of financially vulnerable people to be appropriately addressed and offset further downstream costs to government. It therefore calls on the State Government to implement the recommendations listed in this document. 

SAFCA members are also seeing more people experiencing domestic and family violence. While the rate reported to SAPOL in South Australia increased by approximately 2% in the past 12 months, this does not include those that do not report and our members have provided feedback that this is an increasing issue and one they are concerned needs greater attention. 

In a recent survey, SAFCA members identified housing stress as being their greatest immediate concern when addressing the complex needs of clients. They also identified the need to reach people in the early stages of financial vulnerability to be able to assist them in avoiding the devastating effects of financial hardship. SAFCA asserts that a holistic approach is required to enable the complex needs of financially vulnerable people to be appropriately addressed and offset further downstream costs to government. It therefore calls on the State Government to implement the recommendations listed in this document.  

Rationale 

Constant housing stress can contribute to health problems, stress on family and hardship. Housing stress is an important indicator of risk of homelessness, particularly for low-income households. It is an immediate need that must be addressed. Without suitable and affordable accommodation it is difficult to work with individuals and families on other financial needs. 

Rent costs and housing prices have risen beyond income increases. This has shut people out of access to stable, secure and affordable housing and meant they struggle to stay housed, are forced to live in sub-standard homes and have difficulty covering other basic living costs. Renters on low incomes particularly struggle with housing affordability. Of the 204,000 SA renter households, nearly 60% were in the bottom two income quintiles. Of those low income renters, 32.4%, or 39,556 households, were in housing stress, 
(spending more than 30% of their income on housing costs). Almost all of these were in private rentals. 

Renting also creates additional costs that some homeowners can avoid. For instance, solar power and energy efficiency improvements like double-glazing or insulation are at the owner’s behest and are often not possible for renters. Tenants often have little choice and find that once in a home they face crippling energy bills due to the thermal inefficiency. It should be noted that low income renters receive a lower Cost of Living 
Concession than homeowners on similar incomes. 

Public housing provides homes for those left out of the housing market and adds market supply to make housing more affordable. Its construction provides economic stimulus in the short term and a store of public wealth in the long term. However, there is a  substantial waiting list for public housing despite stock having declined over recent decades, and many houses being old and energy inefficient.
 
 

Recommendation

SAFCA asks the State Government to implement the recommendations made by  SACOSS in their Rental Affordability Policy document.  

Rationale 

The financial counselling sector continues to grow in order to meet the increasingly complex needs of financially vulnerable clients effected by the intersection of mental health, domestic and family violence, gambling and housing stress and impacted by COVID-19. The sector must continue to evolve by reacting to identified issues and Government funding is essential to achieve this.

Recommendation

SAFCA asks that the State Government provide grant funding for research and /or capacity building initiatives to address emerging issues identified as a result of financial counselling. 

Approximate cost $100k per annum.

Rationale 

A broad reaching campaign promoting an awareness of financial counselling would help 
to normalise the practice of seeking help and encourage people experiencing financial stress to contact a financial counselling service. This could enable an early intervention that may prevent larger downstream costs to government and society than if a person were to fall deeper into financial hardship. 

Recommendation

SAFCA recommends that a budget be allocated for the ongoing promotion of the benefits of financial counselling across targeted media. 

Approximate cost $85k per annum.

“Housing is one of the biggest issues facing our clients. We’re seeing people struggling to remain housed because they are facing increasing rents and are unable to cover basic living costs. It is essential that they have somewhere safe, stable and secure to live in order to overcome challenges and live a decent life.”
Buffy 
SAFCA Member

“Consistent and responsive funding for financial counselling is vital for stability in the sector and the provision of support for financially vulnerable people.” 
Samantha Forsyth 
SAFCA Deputy Board Chair 

“Financial Counselling is a vital service supporting our most vulnerable of 
clients. Promotion of the service, regular and consistent funding to the service and acknowledgement of the difference that financial counsellors can make is
paramount. To be able to deliver the service to the broader community could make 
a huge difference to many people.”
Carolyn Piper
SAFCA Board Chair