Remote communities, often home to some of the country’s most economically disadvantaged families, are feeling the pinch more than ever as the cost of living continues to soar. These areas, populated by Indigenous Australians, face exorbitant prices for basic necessities, with diesel fuel costing as much as $4 per litre—twice the rate seen in metropolitan regions.

This steep rise in fuel prices has a domino effect, leading to increased costs for essential goods and contributing to food insecurity. The federal government’s remote area allowance aims to offset these expenses by providing a subsidy for essential costs in far-flung locales. However, many are questioning whether this financial aid is sufficient given the current economic landscape.

Dr. Josie Douglas, a Wardaman woman and the General Manager of the Central Land Council, expressed concerns over the inadequacy of the existing support. “The subsidy helps, but fuel prices will quickly erode those savings,” she noted. “As prices for key items like fresh food rise sharply, families will struggle to keep up.”

Since its inception in 1984, the remote area allowance has provided supplementary income to support recipients living in isolated areas. Yet, with economic conditions changing, there is a growing call for the scheme to be re-evaluated to better meet the needs of those it is meant to assist.

“Prices for key items like fresh food will rise sharply, and families will struggle to keep up.”

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.