People with disability in Australia

Introduction

People with disability tend to be worse off financially than those without disability. This can affect their ability to raise funds in an emergency, pay bills or buy food. Some people with disability may need to seek help from friends, family or welfare and community organisations because of financial problems.

Prosperity and financial situation

In 2021, around 1 in 3 (32%) people with disability aged 15–64 described their prosperity as ‘just getting along’ and nearly 1 in 12 (8.0%) said they were poor or very poor, compared with 18% and 1.6% of those without disability. People aged 65 and over in general have a more favourable assessment of their prosperity than those aged 15–64; however, even in the 65 and over age group people with disability were more likely to say they are ‘just getting along’ (27%) or are poor or very poor (2.3%) than those without disability (14% and 1.4%*, respectively (*estimate unreliable)) (DSS and MIAESR 2022).

Of people aged 15–64 with disability, those with severe or profound disability are more likely to say they are ‘just getting along’ or are ‘poor/very poor’ (53% combined for the 2 groups) than those with other disability status (39%) (DSS and MIAESR 2022).

People with disability aged 15–64 are more likely to be unsatisfied with their financial situation than those without disability (33% compared with 14% in 2021). Older people with disability (aged 65 and over) are less likely (16%) to be unsatisfied with their financial situation than those with disability aged 15–64 (33%), but more likely than people aged 65 and over without disability (9.2%) (DSS and MIAESR 2022).

Of people with disability aged 15–64:

• males are about as likely to be unsatisfied with their financial situation as females (both 33%)
• those with severe or profound disability are more likely to be unsatisfied (44%) than those with other disability status (32%)
• 45% of those with psychosocial disability and 43% with intellectual disability are unsatisfied with their financial situation, as are 36% of people with physical disability and 31% of those with sensory disability (DSS and MIAESR 2022).

Ability to raise emergency funds

Having to raise $3,000 for an emergency within one week could be a problem for many people with disability. In 2021:

• 25% of people with disability aged 15–64 said they would not be able to raise emergency funds
• 13% would have to take drastic action, such as selling an important possession
• 20% would have to make sacrifices, such as reduce spending or selling a possession
• 43% could easily raise emergency funds (DSS and MIAESR 2022).

People without disability aged 15–64 are more likely (60%) to be able to easily raise emergency funds, and less likely to be unable to raise emergency funds (9.4%), than those with disability (DSS and MIAESR 2022).

The ability to raise emergency funds increases with age. People with disability aged 65 and over are more than twice as likely (70%) to be able to easily raise emergency funds than those aged 15–24 (28%) (Figure FINANCES.1).

Of people aged 15–64 with disability:

• those with severe or profound disability are less likely (33%) to be able to easily raise emergency funds than those with other disability status (44%)
• males (45%) are about as likely as females (42%)
• those in Major cities are more likely (46%) than those in Inner regional areas (39%)
• those with intellectual disability or psychosocial disability are least likely (23% and 29%, respectively) to be able to easily raise emergency funds
• those with physical or sensory disability are most likely to be able to easily raise emergency finds (42% and 39%, respectively) (DSS and MIAESR 2022).

Figure FINANCES.1: Ability to raise emergency funds, by disability status and age group, 2021

Notes:
* Relative standard error of 25–50% and should be used with caution.

1. Emergency funds include raising $3,000 for an emergency within one week.
2. ‘Sacrifices’ include reduced spending or selling a possession.
3. ‘Drastic action’ includes selling an important possession.

Source data tables: Data tables – Finances. View data tables

Financial stress

In 2021, people with disability aged 15–64 were more than twice as likely (21%) to have experienced financial stress as those without disability (9.5%). People with disability aged 65 and over are less likely (5.8%) to have experienced financial stress than people with disability aged 15–64, but more likely than people without disability aged 65 and over (3.4%). Of those aged 15–64 with disability:

• males are about as likely (19%) to have experienced financial stress as females (22%)
• those aged 25–44 are more likely (28%) to have experienced financial stress than those aged 45–64 (17%)
• people with psychosocial disability are somewhat more likely (31%) than those with physical disability (22%) (DSS and MIAESR 2022).

People with disability aged 15–64 are more likely to have experienced stressful financial events because of a shortage of money in the current year than those without disability. In 2021:

• around 1 in 5 (19%) of those with disability asked for financial help from friends or family, compared with 7.6% of those without disability
• 1 in 6 (16%) could not pay electricity, gas or telephone bills on time, compared with 9.1%
• almost 1 in 10 (9.5%) pawned or sold something, compared with 4.2%
• 1 in 11 (9.0%) asked for help from welfare or community organisations, compared with 3.0%
• 1 in 11 (9.0%) could not pay the mortgage or rent on time, compared with 6.1%
• 1 in 12 (8.8%) went without meals, compared with 2.3%
• 1 in 15 (6.5%) were unable to heat their home, compared with 1.8% (Figure FINANCES.2).

Figure FINANCES.2: Whether people aged 15–64 experienced stressful financial events, by sex and disability status, 2021

Notes:

1. ‘Financial stress’ includes experiencing at least 2 out of 7 stressful financial events in the current calendar year.
2. This analysis is restricted to people who responded to all 7 financial stress events questions.

Source data tables: Data tables – Finances. View data tables