Cost of living crisis a 'silent disaster' as charities struggle with demand

Aussies are reining in spending during the cost of living crisis; buying less and leaving stock sitting on shelves.

Good360, a charity that redirects unsold goods to people in need, receives five skip bins worth of products that otherwise would have been sent to landfill every week.

But with more Aussies in need charities are also facing huge demand and soaring workloads.

Founder and managing director of Good360 Australia Alison Covington described the cost of living crisis as a "silent disaster".

"If you look at bushfires, when people can see that the country is burning governments, businesses and individuals fund charities to do this work," she said.

"Because the cost of living is quite silent, people don't know that charities need assistance."

The type of people needing support from charities has changed after 12 interest rate hikes since May 2022, Ms Covington said.

"It's people who are working two jobs, people who would normally support the charitable sector and make donations to help the vulnerable - they're the vulnerable themselves now," she said.

Good360 has recently supported Uniting Vic/Tas in Melbourne with more than $10,000 worth of body wash.

"They talk about that as immediate and profound in changing the lives of the people they assist," Ms Covington said.

"If you have the ability to buy those things you take that for granted but when people are having to cut back, being able to stay clean is something that provides dignity."

Every year $2.5 billion worth of unsold household goods are wasted by businesses according to a Deloitte Access Economics report commissioned by Good360.

In the past 12 months the charity has received nearly $110 worth to redistribute to people in need.

Australian Retailers Association CEO Paul Zahra said changing consumer habits meant many retailers were left with excess stock.

"After 12 interest rate rises we're seeing consumers focusing on essentials and spending less on discretionary goods," he said.

He said the retail sector took sustainability seriously and programs were implemented by many businesses to divert excess stock from landfill.

While more unused goods means more people that can be helped, Ms Covington said the charitable sector needed funding to be able to scale up its response.

The surge in demand for support had increased Good360's workload by 30 to 40 per cent.

"Just $1 million in funding could divert $20 million worth of unsold consumer goods away from landfill and towards people in need," Ms Covington said.

"We're asking the government to step in now to fund this silent crisis and help businesses to be able to continue to operate."