Norman Hermant reported this story on Tuesday, September 15, 2015 08:30:00

MICHAEL BRISSENDEN: A report released today has for the first time projected the standard of living Australian family groups will experience over the next decade.



And after a mining fuelled boom, living standards are set to slow to a near stop.



The report from Anglicare Australia says those with the lowest incomes will see their standard of living decline significantly in the next 10 years.



Social Affairs correspondent Norman Hermant reports.



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NORMAN HERMANT: It was the sound of the boom. Australians spent on real estate, household goods and overseas holidays.



A new report from the National Centre for Social and Economic Modelling, NATSEM, shows the last decade was a good one for the nation's standard of living.



Researcher Ben Phillips authored the report for Anglicare Australia.



BEN PHILLIPS: Over the past 10 years there's no doubt Australian households have on average done exceptionally well.



NORMAN HERMANT: For the richest Australians the report says the standard of living for the decade from 2004 to 2014 rose 28 per cent.



Even the households with the lowest incomes saw living standards rise 15 per cent.



But Ben Phillips says the decade to come is a different story.



BEN PHILLIPS: I think we've gotten used to higher pay packets year-in, year -out, that's well above the increase in the cost of living. Perhaps the next 10 years that's not going to happen, we'll be treading water effectively. And there'll be some groups who'll do much better than other groups will do.



NORMAN HERMANT: Over the next decade the report projects the standard of living for all Australians will rise just 1.7 per cent.



The worst-off Australians, the unemployed and single parents, will actually see a significant decline in living standards - a projected drop of 4.5 per cent.



Kasy Chambers is Anglicare Australia's executive director.



KASY CHAMBERS: These people are actually going to go backwards in living standards. Now that's really dire when you consider that these are the people on the lowest incomes already. So what this report's giving us is a fact that we are at a watershed moment in Australia.



NORMAN HERMANT: The report says changes made to family payments and pensions in the last two federal budgets are a major factor in the projected decline.



Penny Leemis is a social activist, who was formerly homeless.



PENNY LEEMIS: Yes, it will always be an inequitable society. That's how the world works. The critics I have no doubt will be very keen to say but it's an inequitable society. My question back to them would be: so is that okay? Is that okay to sit back and do nothing and say well that's how the world is?



MICHAEL BRISSENDEN: Social activist Penny Leemis ending that report from Norman Hermant.

