The Federal Budget has been released and we’ve been through it to see if it addresses what we had hoped. Spoiler alert, it didn’t.
While we’d hoped to see measures beginning to address intergenerational inequality, this budget presents little to reverse the broken generational bargain. This unspoken agreement has seen each generation better off than the last, until now, with young people in Australia today to be the first since Federation to be worse off than their parents.
It is a dire situation – one successive governments have refused to so much as acknowledge.
Here’s a quick look at each of our priority areas but keep an eye out for more in the coming weeks. Please note that we’ve only included budget items aimed at young people. Obviously these aren’t the only budget measures that will impact young people, but let’s start by putting these into perspective.
Economic participation
What we wanted
The rate of income support, including Youth Allowance, raised above the poverty line.
Investment in and commitment to a youth full employment guarantee.
Tax reforms for low-to-middle income earners to begin to address intergenerational inequality.
What we got
An increase of $40 a fortnight to the base JobSeeker and Youth Allowance rates. A grand total of $2.85 a day.
The poverty line, or the level of income below which people are regarded as living in poverty, sits around $490 per week for a single adult. The maximum Youth Allowance rate will be raised to $301.40 per week, an increase that isn’t nearly enough.
$0.8 million in 2023-24 (plus $0.9 million 2024-25 & 2025-26) to SA for the Schools Pathways Program which assists in promoting a potential career path for young people in the defence industry. It focuses on increasing the number of students undertaking STEM subjects relevant to the defence industry in participating schools.
Supporting young people interested in career pathways for potentially growing industries is positive, but this program does not aim to improve or guarantee improvement in young people's disproportionate rates of unemployment and underemployment.
Mental health
What we wanted
Significant investment in increasing the availability and accessibility of mental healthcare services.
Increased funding to evidence-based community mental health and wellbeing support, including dedicated youth programs.
What we got
$6.9 million over two years from 2023–24 to continue child and youth mental health supports, including supporting digital work and study and student mentoring.
This funding is to extend headspace’s Work and Study Online program (and to continue youth programs in Newcastle, NSW). This is important support, but it does not address the need to increase availability and accessibility of mental health and wellbeing services.
$2.8 million to extend supports for people living with eating disorders and their families.
$6.2 million to support children to build and maintain a positive body image and reduce body dissatisfaction and appearance pressures.
This spending is important, and welcome, but it’s targeted and doesn’t address the broader mental health and wellbeing issues young people are experiencing.
Housing
What we wanted
Funding for youth-specific homelessness services including for prevention and early intervention.
An increased rate of Commonwealth Rent Assistance (CRA) available.
What we got
A small increase in CRA that doesn’t come close to addressing the rent increases over the last few years.
A young person receiving the maximum rate of Youth Allowance and the maximum rate of CRA after increases will receive $783.58 per fortnight or $391.79 per week. The median rental property price in Adelaide is currently $430 per week, leaving little to nothing for living expenses like, you know, food.
If you need some extra support, don’t hesitate to reach out to any of the below:
Lifeline 13 11 14 & webchat 24/7
Kids Helpline 1800 55 1800 & webchat 24/7
13 YARN (13 19 76) Crisis support for First Nations people 24/7
