A businessman’s claim that $100,000 is the new poverty line in Australia has sparked a debate online over how much money an average family in the Lucky Country needs to bring home in 2026.
The unnamed real estate agency owner argued soaring housing and household costs have made a six-figure income insufficient to raise two children during an interview with tax and business advisor Lawrence Petruzzelli on Monday.
“$100,000 a year now in Australia is literally the poverty line,” the businessman told Mr Petruzzelli.
“If you earn $100,000, you take away your tax so you are left with around $80,000. Then, if you’re renting a house in a decent area, you’re going to be spending at least $800 [per week]. That’s the minimum.
“$40,000 of it is going straight to rent. Then you’ve got the cost of food, the cost of petrol, everything else, rego, insurance.
“By the time you’re finished and you’ve got two kids… $40,000 just to support that family, apart from the rent, is not going to go anywhere. So you literally have to live in a car.”
While there is no official poverty line in Australia, research conducted by ACOSS/University of New South Wales, estimated the metric to be around $584 a week (approx. $30,368 per year) for a single adult and $1,226 a week (about $63,752 per annum) for a couple with two children.
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The worker went on to argue that most families need two incomes just to survive, leaving parents in a tough situation where they have less time to spend with their children.
“Australia now, the economic environment is very, very toxic for families. I don’t think it’s very good anymore,” he continued.
“It’s not the same Australia through the 80s and 90s and early 2000s. I think after 2006 till now, the last 20 years, there’s been a very slow decline.
“You can’t blame everything on the current government, but they’ve definitely made it a lot worse.’
Mr Petruzzelli, who frequently interviews members of the public about financial topics for social media content, said he agreed with the business owner’s view, arguing a family with children now needs to earn at least $300,000 to enjoy a good standard of living.
The video, which has since been watched by more than half-a-million people, has divided social media users over what the average family really needs to earn to survive living in Australia.
“10-15 years ago 100k a year was absolutely amazing, could probably support a family with that solo income. Now, it’s f*** all,” one person wrote, with another adding: “100k in a dual income household is the new norm for survival.”
Others argue that a six-figure salary is not necessary and that families just need to readjust their life expectations and live within their means.
“I wonder how many of these people on 100k go on holidays every year, get DoorDash and have all the subscriptions,” one user commented.
A second wrote: “People start to learn how to live within their means. Stop spending money on s*** you don’t need and can’t afford. I grew up with hand me down clothes, never had a new bike, never had a new car.
“Moved out of home at 16, I managed to buy my house and get along fine with $30k a year and don’t live like a pauper or hermit.”
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