Ground zero of Australia’s cost of living crisis: Alice Springs kids rob their grandparents’ of Centrelink money. Aussies intentionally live in the dark. And families choose between rent or dinner

The cost of living crisis in Alice Springs is so dire that children are stealing Centrelink money from their own grandparents, people are deliberately left in the dark and families are forced to choose between rent and food.

The ‘absolute poverty’ of the lives of people living in Central Australia, particularly Indigenous Australians, was exposed last week at a parliamentary committee hearing in the region.

Liza Balmer, the CEO of the NPY Women’s Council – an indigenous organization that provides financial and social support to the local population – said during the survey that her group has the capacity to help about 80 people each week.

They reject at least 120 more.

Some months the center has no choice but to close its doors two weeks into the month as funding dries up.

Employees are increasingly confronted with aggressive behavior ‘because people are being turned away and are hungry’.

‘People choose power cuts themselves… there are those who go without food on some days.

“Our region is probably in the lowest 10 percent of the country’s income scale and is heavily dependent on income support.”

Ms Balmer revealed that there are tragic stories of ‘young people stealing their grandparents’ money’, with old people being forced to ‘run to the bank to collect their money before their children do.

“They’re really scared.”

Many of these young people were supposed to be eligible for Centrelink, but they were never given the funds to even apply.

“We really see people living in desperate states every day.”

In one case, a woman with two young children had no power in her home for more than a year.

That is becoming ‘more and more common’.

‘People choose: will we pay the rent this week, will we eat this week, who will go without? Those are real conversations that are being held.’

Many people she has come across depend on personal loans to buy their food and stay afloat, but then they need another personal loan to pay off the first one.

“They live in poverty, there’s no doubt about that.”

Alice Springs Mayor Matt Paterson also contributed to the inquiry, which was led by Minister for Shadow Indigenous Australians, Jacinta Nampijinpa Price.

Mr Paterson said Alice Springs is ‘unliveable’ for many people, especially young families.

“The dollar doesn’t go as far in regional Australia as it does everywhere else,” he said.

He mentioned an “Alice Springs tax” that has unofficially been around forever, making it more expensive to build homes and infrastructure.

Dr. Galvin John Morris, director of the Yipirinya School, also led the research to explain how the crisis in the cost of living made the education of underprivileged children more difficult.

The school has been at the center of the political infighting as Senator Nampijinpa Price urges the government to consider a funding request that would allow at-risk children to stay on campus.

The project initially cost $8 million and the school hoped to see some of the money soon as part of the government’s commitment to helping Alice Springs.

But because the length of lead times often stretched to months and years, Dr Morris said ‘by the time you put the shovel in the ground (after getting approval) the price has skyrocketed’.

As for the boarding school, an estimate of $8 million was given in May 2022. Now that same project would cost about $12.1 million, meaning that even if the government approved the original request, it would not cover the cost now.

“That model is now off the table,” Dr Morris told the study. “It would have been a very important piece of our puzzle.”

Mrs Nampijinpa Price’s mother, Bess, works at the school, which according to Dr Morris is one of the few schools in the country to teach four Aboriginal languages, to ensure equal opportunities for children from the most rural corners of the country. region.

With 300 students, Yipirinya has 38 school buses that travel 7,500 km per week to drop off and pick up students. They all get three meals a day – somewhere between 800 and 900 a day in total.

One of the bus routes takes 2.5 hours each way.

The school receives federal funding of approximately $35,000 to $40,000 per student, but under the current circumstances, this is not far. Attracting high-quality teaching staff is also a constant challenge.

Paying a high-quality member of staff and an $80,000 salary – “fairly modest,” says Dr. Morris – would push them out of the social housing pool and force them to fight for the already limited number of rental properties available. is in the community.

Fred Docking, the Salvation Army’s Northern Territory Coordinator, said affordable housing is one of the main issues his organization faces as they try to help families in the region.

“The cost of living in Alice Springs was high before inflation…now it really hurts. And it doesn’t hurt people in the same way (as it does in other parts of Australia),’ he said.

Mr Docking said Alice Springs has a very ‘unique people who have no income whatsoever’ making it increasingly difficult to keep afloat.

Once a $50 food stamp fed an entire family, but now it doesn’t get very far.

Many of the people in need of Salvation Army services in the region are leaving prison and no support services are waiting for them.

It feeds a ‘cycle of desperation’ and forces people back into poverty. In some circumstances, people are held in detention for excessively long periods, sometimes beyond their actual sentence, because the justice system is so backlogged.

Mr Docking urged the committee to look for a quick solution to relieve pressure on the community.

He cited an example where a mother with cancer needed treatment in Adelaide but chose not to go because she couldn’t afford to take her children with her.

In those circumstances, a community program was able to support her with family airfare and accommodation, but it’s becoming more common and it’s impossible to help everyone.

Families are finding it increasingly difficult to put food on the table, keep the lights on and pay the rent. In some cases, children are not properly cared for.

“We have to report from time to time but parents really love their kids and they try their best,” Mr Docking said.

“It’s just heavy.”

But beyond the cost of living itself, Mayor Paterson said the limited number of flights and increased crime make it difficult to convince people to call Alice Springs home for the long haul.

Rates are up seven percent this year, thanks in large part to skyrocketing insurance costs to fight crime.

“People are hesitant to eat out because they fear for their safety.

‘The Council of Alice Springs has reluctantly agreed to CrimSafe on some of our windows, just to get insurance costs down.’

Airlines have reduced their services to and from the region, meaning it’s more difficult for residents to make fast journeys to other parts of Australia.

“You’d attract more talent if they could duck out to see loved ones. Instead of building a life here, they now stay for two years and then go back home.

“We have people missing loved ones’ funerals because they simply can’t afford to get out of Alice.”