Poverty has become a consistent feature of Australian life, with millions still living below the breadline despite 27 years of uninterrupted economic growth, the Australian Council of Social Service says.

A vital circuit-breaker is needed, including a complete overhaul of Australia’s employment services, a commitment to “full employment” and a guarantee of at least two days a week of early childhood care – highly subsidised for people on low incomes – and education for every child.

A new report, Poverty in Australia 2018, has been released to coincide with Anti-Poverty Week.

It shows there are just over three million people (13.2%) living below the relative poverty line, including 739,000 children (17.3% of children).

The relative poverty line is considered to be 50% of median household disposable income.

In Australia, the poverty line is defined as a single adult living on less than $433 a week, or $909 for a couple with two children, before housing costs.

The figures refer to 2015-16, the most recent year for which data is available.

One in eight adults and more than one in six children are living in poverty, and many of those are living in “deep poverty” – a staggering $135 per week below the poverty line on average.

Cassandra Goldie, the chief executive of Acoss, said those experiencing poverty at the highest rates were those unable to get paid work, who were relying on Youth Allowance and Newstart.

“The evidence released today shows that through social security, housing and employment policies, as a nation we choose the level of poverty we are prepared to accept,” she said.

“The government argues that poverty in Australia is not the problem. They are wrong. People on the lowest incomes cannot afford to pay for the very basics of life – housing, food, energy, health and getting their teeth fixed.

“Poverty is now a consistent feature of Australian life. Are we prepared to accept this?”

Australia is the second-wealthiest country in the world in terms of wealth per adult, but its poverty rate has become entrenched at a high level. It is currently 14th highest out of 36 Organisation for Economic Co-operation and Development countries.

The overall poverty rate has fluctuated within a band between 11.5% and 14.4% between 1999-2000 and 2015-16.

Poverty declined substantially from 13.1% in 1999 to 11.5% in 2003, rose sharply during the boom years to 14.4% just before the global financial crisis in 2007, declined to 12.6% in 2009, and has since plateaued, hitting 12.8% in 2015-16.

Child poverty moved within a higher band, fluctuating between 14.3% and 18.6% from 1999 to 2015. It is currently 17.3%.

A major reason Australia’s poverty rate is so high is the low level of social security payments.

Most people below the poverty line in Australia (53%) rely on social security as their main source of income, but most major income support payments sit well below the poverty line.

To escape poverty, Australians need to supplement their social security payments with private income or move out of the social security system altogether (if able to do so), and escaping poverty is easier if the payment sits close to the poverty line.

The freezing of the Newstart Allowance (which has not increased above inflation since 1994) has increased poverty among those receiving that payment. Poverty among people in households relying mainly on the Newstart allowance rose from 61% in 1999 to 78% in 2015, while the average poverty gap (for households reliant on Newstart Allowance below the poverty line) rose from $81 per week to $136 per week over the same period.

Last month, the Newstart allowance was boosted by $2 a week, an increase that people relying on the payment said was laughable.

Welfare payments such as Newstart, Youth Allowance and the pension increase twice a year through indexation – but are pegged to different rates. In September, the base rate of Newstart rose by $2.20 – or about 30c a day – to $275.10 a week.

A report by Deloitte Access Economics released last month said the decision to tie Newstart to prices rather than wages reflected a “difference in generosity”, and meant for those on Newstart, “your living standards are set to sink relative to national averages”.

Prof Peter Saunders from the University of New South Wales, lead researcher of the Poverty in Australia 2018 report, said the Australian government has joined other nations in adopting the sustainable development goals, which include reducing by half poverty rates for men, women and children by 2030, but Australia was a long way from achieving them.

“Australia lacks a poverty reduction plan and we do not have regular monitoring and reporting by governments on progress to address poverty,” he said.