Cost-of-Living Crisis Deepens Across Australia as Fuel, Food, and Repair Costs Rise

TEMPO.CO, Jakarta - Australians are facing mounting financial pressure as rising fuel costs, growing food insecurity, and expensive winter-related repairs add to the country's ongoing cost-of-living crisis.

Industry groups, charities, and insurers have warned that households and businesses are increasingly struggling to absorb higher expenses, with some Australians lining up for food relief in the early hours of the morning while others postpone essential home maintenance to save money.

According to Foodbank Australia's 2025 Hunger Report, one in three Australian households—around 3.5 million homes—experienced food insecurity over the past year. More than 60 percent of food-insecure households were classified as severely affected, meaning they skipped meals or went entire days without eating.

As reported by Yahoo News Australia, demand for food relief services continues to rise across the country. In Adelaide's northern suburbs, volunteers at the charity Cos We Care say increasing numbers of people are seeking assistance each week.

"It's gotten a lot busier. A lot more people are coming now," said Ann Cooper, founder of the volunteer-run organization.

"Some even come at one o'clock in the morning just to be first in the line."

The charity distributes free food, clothing, and other essentials to people experiencing homelessness and financial hardship. Cooper said new faces regularly appear alongside long-term visitors as economic conditions remain difficult.

"There are more and more people struggling," she said. "We're getting new faces every week."

Cost pressures are also affecting Australian households in other ways. New research by Allianz Australia found that many homeowners are delaying maintenance and repairs to reduce spending, potentially exposing themselves to larger financial risks.

The insurer estimated that winter-related home and vehicle insurance claims reached more than A$440 million last year, including A$204.6 million in home and contents claims and A$238.9 million in motor vehicle incidents.

Despite those risks, more than half of Australians failed to prepare their homes for winter, while 68 percent neglected vehicle maintenance.

Storm-related damage, including collapsed roofs and severe water leaks, accounted for nearly A$60 million in insurance claims during the previous winter season. However, only one-quarter of homeowners inspected roofs or cleaned gutters before heavy rainfall.

Faulty electric blankets and poorly maintained fireplaces also contributed to costly house fires, while theft claims increased as longer winter nights created opportunities for criminals.

Allianz chief general manager of consumer Shez Ford warned that delaying maintenance could result in significantly higher costs later.

"Many Australians head into winter without taking the steps that can make a real difference to their safety and peace of mind," Ford said as quoted by Real Estate.

At the same time, Australia's transport industry is warning that rising fuel costs could further intensify inflationary pressures.

According to the National Road Transport Association (NatRoad), the planned reinstatement of the Road User Charge (RUC) on July 1 risks pushing freight operators back into the difficulties experienced earlier this year when fuel prices surged following the outbreak of conflict in the Middle East.

Diesel prices rose by nearly 90 percent during the height of the crisis, with some operators paying as much as A$3.25 per litre. NatRoad said many transport businesses were forced to park trucks because they could no longer afford fuel.

A survey conducted by the industry group found that 38 percent of operators temporarily removed at least one truck from service.

The federal government suspended the 32.4-cent-per-litre Road User Charge in April to ease pressure on the sector. However, the levy is scheduled to return next month.

NatRoad warned that reinstating the charge while fuel markets remain volatile could significantly increase freight costs across the economy.

Road freight transports approximately 80 percent of Australia's domestic goods, including groceries, medicines, agricultural products, and essential supplies. Industry leaders say any increase in transport costs will eventually flow through to consumers.

"When trucking costs surge, every Australian household pays," the organization said.

Regional communities are expected to be particularly vulnerable because they rely heavily on road transport and often lack alternative freight options.

The combined pressures of rising living costs, food insecurity, expensive household repairs, and higher transport expenses have created growing concerns about the financial resilience of Australian households.

For charities such as Cos We Care, the impact is already visible.

"At least they know where they can come and get support," Cooper said. "It's just to see a smile on someone's face, that they can get something."

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