Sydney has the highest poverty rate of any capital city in Australia, according to a new report that shows the staggering gap between rich and poor in our state.

While many families are bundling their children off for overseas holidays and expensive vacation camps for school holidays, others are living week to week, forgoing medical appointments and skipping meals, according to research from the Council of Social Service of NSW (NCOSS).

A Council of Social Service of NSW report has found disposable household income for the richest residents of NSW is nearly six times that of the poorest. Credit:Andrew Quilty

More than 181,000 NSW children, or one in seven, are currently living in poverty – a higher proportion than in any mainland state.

The NCOSS report has found the average weekly disposable household income for the richest residents of NSW is nearly six times that of the poorest – at $1895 for the richest 20 per cent, compared to $348 for the poorest 20 per cent, well below the median $430 weekly rent for any house or unit in the state.