The challenge
Traditional income-based poverty measures capture only one dimension of disadvantage and can miss individuals and households who are deprived across multiple domains simultaneously—including health, education, employment, housing, and social connection. Australia has lacked a rigorous multidimensional poverty measure that tracks deprivation across these domains using nationally representative data. This project addresses that gap by constructing a comprehensive index using established international methodology adapted to Australian data and institutional context.
The research
This project developed Australia’s first comprehensive multidimensional poverty index using data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. The index was constructed using the Alkire-Foster method, under the guidance of Professor Sabina Alkire at OPHI (Oxford). The project was a tri-sector collaboration between the Melbourne Institute, the Brotherhood of St. Laurence, and OPHI. The research team completed eight intensive training sessions on multidimensional poverty index construction delivered by OPHI, and led all research design and execution on the Melbourne Institute side.
The impact
In 2025, findings were presented to the Australian Council of Social Service (ACOSS) and the Poverty and Inequality Partnership, the BSL Advisory and Executive Boards, and Parliament House, and were the subject of senior briefings with Treasury and Department of Social Services advisers. The Co-CI engaged with senior officials in government across parliament, the Department of the Prime Minister and Cabinet, Treasury, the Australian Bureau of Statistics, and the Department of Social Services.
Our researchers
Melbourne Institute - Melek Cigdem-Bayram, Nicolás Salamanca
Our partners
Brotherhood of St. Laurence (BSL)
Oxford Poverty and Human Development Initiative (OPHI)