Australia has made no progress in the fight against poverty over a decade, in fact, the percentage of Australians living in poverty actually increased according to a recently released report.

Key points: Poverty is "everywhere" and "getting worse," volunteer says

Poverty is "everywhere" and "getting worse," volunteer says There are about 320,000 public housing dwellings in Australia

There are about 320,000 public housing dwellings in Australia There are over 150,00 applicants on waiting lists for public housing

In 2003-04, 11.8 per cent of Australians lived in poverty, according to statistics cited by the Social Policy Research Centre. By 2014, that number had crept up to 12.6 per cent.

Despite a run of 25 years of uninterrupted economic growth — almost unmatched in the Western world — the poverty rate has not budged.

"It's everywhere really. And it's getting worse," says Maria Dowling, a volunteer with the St Vincent de Paul Society in Melbourne.

She and her husband John are part of the Home Visitation program, which provides food and assistance for low income households.

"Their need is just so great," Ms Dowling says.

"That gap is just huge out there."

Peter Ryan, who lives with his four children in public housing in Melbourne, is thankful for the "Vinnies" visits.

"It doesn't seem like a lot to a lot of people. But when you're on the pension, it actually all adds up," he says.

"You find in the next week, you haven't got money for food. And if you haven't got money for food, the kids are hungry, and they yell at dad."

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The 61-year-old stopped working years ago after suffering shoulder and hip injuries.

Most of his pension goes to pay his rent; the family has about $520 a fortnight for all expenses aside from utilities.

"Truthfully, it's bloody hard. I think it's actually got harder," he says.

There are about 320,000 public housing dwellings in Australia.

Many of the residents are feeling the effects of one of the most often identified causes of poverty: the reduction of social welfare payments, such as Newstart, the parenting payment, and the Disability Support Pension.

Eight-year wait to get into public housing for one family

Vanessa Carpani is what statisticians refer to as a "lone parent", caring for her two children Jade Gangi, 10, and Jene Gangi, 17.

Below the poverty line: Vanessa Carpani receives $414 in welfare payments a week

Vanessa Carpani receives in welfare payments a week Her subsidised public housing rent is $114 a week

Her subsidised public housing rent is a week That leaves her with $300 for income for food, utilities and all other expenses

That leaves her with for income for food, utilities and all other expenses According the OECD the poverty level for a lone parent with two children is $548.74 per week

According the OECD the poverty level for a lone parent with two children is per week She is $248.74 below the poverty line per week

Her only income is from partial payments from Newstart, and a parenting payment. She also lives in public housing.

"I couldn't afford private rental," she says.

"We waited eight years in transitional housing to get housed here."

Even with subsidised rent, and income from two social welfare payments, Ms Ryan's family has fallen far below the poverty line.

For a lone parent with two children, OECD guidelines set the poverty line at $548.74 per week after housing costs.

After paying her rent, Ms Ryan is left with only about $300 per week. That's $248 per week below the poverty line.

Still, Ms Ryan says without public housing, her family's situation would be much worse.

"There are less fortunate people out there that are living on the streets still," she says.

Living standards improving for low income families: IPA

The recent report on poverty from the Social Policy Research Centre is not without its critics.

Some, like the free-market think tank the Institute of Public Affairs (IPA), believe contrary to the report's central conclusion, that living standards are improving for Australia's poorest citizens.

"We've got to focus on: 'Are people's lives better than they were 10 years ago, 20 years ago?" says Simon Breheny, director of policy for the IPA.

"Things like fridges, microwaves, cars, televisions, X-boxes, all of these things are available to people who are on even the lowest incomes in our community. That's a terrific thing."

Mr Breheny argues because the poverty rate is based on taking 50 per cent of the median income, as that income rises, so do the relative living standards of people living above and below the poverty line.

Zowie Mactavish lives just below the poverty line with her daughter Tiffany van Klaveren, aged 15.

Public housing has been vital for Zowie Mactavish (left) and her family. ( ABC News: Norman Hermant )

She does not know where they would be if they were not in public housing.

"If we hadn't been offered this property, we were about to be out on street," she says.

Ms Mactavish has income from three sources: partial payments from the Family Tax Benefit and Newstart, and some part-time work. Still, after housing costs, her $465 weekly income is just below the poverty line — $514. 44 per week.

Public housing has been a vital backstop for her family. But governments across Australia have failed provide enough to meet demand.

There are more than 150,00 applicants on waiting lists for public housing across the country.

"Without public housing it'd just be crazy, chaos," Ms Mactavish says.

"I know so many people who are in public housing that if they weren't in public housing, they'd just be destitute … living in squats, wherever."