One in four Australians are finding the cost of living tougher than ever and struggling to pay for everyday essentials, new research has found.
A survey by the organisation Good360, which supplies unsold essential goods to charities, found the crisis was being felt most sharply in South Australia and Queensland, where 34 and 30 per cent of people respectively are likely to say they're "doing it tougher now than ever before".
The national average is 27 per cent.
Amid straining household budgets, one in six people have depended on paying by credit for everyday expenses.
Another result of the survey revealed financial stress had caused 8.5 per cent of people to ask a charity for help, or are considering doing so.
Many Australians also believe governments and businesses should be doing more to tackle the cost-of-living crisis.
Nearly half (46 per cent) say governments could be doing more to ease the impact on people and communities, while a third (32 per cent) feel that businesses could play a bigger role.
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Good360 Australia managing director Alison Covington said closer cooperation between government, retailers and charities was needed to redistribute billions of dollars of unsold essentials to the disadvantaged.
"The cost-of-living crisis is placing increasing pressure on people already struggling, with more and more people finding it hard to get by and turning to charities for support.
"Meanwhile, we know that a staggering $2.5 billion of unsold household goods such as clothes, furniture and personal hygiene goods are unnecessarily going to waste each year.
"These are essential, everyday items needed for a dignified life."
Covington said flattening retail sales had left major companies with a "mountain" of unwanted goods that should be redistributed in the community.