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Remote communities across the country are home to some of the most economically disadvantaged households. Unfortunately, these areas are also experiencing the greatest impact from the escalating cost of living.
In these communities, Aboriginal residents are facing diesel prices of $4 per litre, which is twice the rate found in urban areas. This surge in fuel costs is driving up the prices of essential goods and exacerbating food insecurity issues.
Many residents in these remote areas rely on the federal government’s remote area allowance, designed to subsidize essential costs. However, there is growing concern that this program is inadequate under current economic conditions.
“While the subsidy offers some relief, the savings are quickly wiped out by rising fuel prices,” explained Dr. Josie Douglas, General Manager of the Central Land Council and a Wardaman woman.
“The cost of essential items, such as fresh produce, is expected to soar, making it increasingly difficult for families to keep pace.”
The scheme has been in place since 1984 and comes in the form of a supplementary payment to income support recipients in remote areas.
More than half of allowance recipients live in the Northern Territory and are supported by the weekly payment of $9.10 for singles, $15.60 for couples and $3.65 per child.
Since 2000, remote communities have faced living costs 40 per cent higher than capital cities. Yet, the remote rental allowance has only increased twice in its 42 years – the last increase being over 25 years ago.
The CLC say the payment has failed to keep pace with reality and are pushing for an increase to support their communities facing poverty and insecurity.
“With fuel prices hitting our people so hard, it’s time for the government to raise it,” Dr Douglas said.
“Cost of living pressures are being felt nationwide, but low-income families in remote communities are bearing the brunt.”
The nation is facing rising fuel prices, with Energy Minister Chris Bowen saying it would be “sensible” for many to consider working from home to ease pressure on national supply.
Bowen’s comments echo the recommendations of the International Energy Agency who have encouraged working from home, using public transport, and reducing highway speeds by 10km/hr.
No such order has been put in place in any jurisdiction yet. Some are opposed, with NSW Premier Chris Minns saying it “wouldn’t make much of a difference”.
“Most of our employees are nurses, paramedics, police officers, firefighters. We just can’t issue that order,” he said on Monday.