Australia has an intergenerational inequality crisis.
Young people in Australia today are the first generation since federation to have a lower standard of living than their parents.
As for their futures, they’re set to see education debt accumulating faster than they can pay it off, increased taxation to support Australia’s aging population and more frequent natural disasters, along with carrying the costs of combatting climate change.
BUT there are opportunities to reduce inequality between generations, one being the upcoming Federal Budget due to be released on 9 May.
Much attention will go to the budget deficit and the government will likely look at decreasing spending and increasing revenue. This approach risks prioritising short-term gains over long-term change, addressing inequality and better supporting young people.
There are a number of areas that could be targeted in the Federal Budget to address intergenerational inequality and better support young people.
Economic Participation
Cost-of-living is the most urgent issue reported by young people and is now the leading risk factor for suicide in Australia. Suicide remains the most common cause of death for young people in Australia.
The financial stress young people are experiencing is compounded by the decade of lost wages prior to the pandemic, on top of being the most impacted by COVID-related economic shock.
The Federal Budget provides an opportunity to address rising costs impacting young people who report they are forgoing food, education, healthcare and travel to make ends meet, combined with anxiety about their future.
What would help in the budget?
Raising the rate of income support including youth allowance.
Investment in and commitment to a youth full employment guarantee.
Tax reforms for low-to-middle income earners to begin to address intergenerational inequality.
Mental Health
Financial stress, isolation and cost-of-living pressures contribute significantly to young people’s experiences of psychological distress and mental health challenges.
Even pre-pandemic, support services like headspace and private psychologists were struggling with increasing demand. This has only been exacerbated since then.
Despite this, the interim Federal Budget released in October 2022 offered little and the Federal Government chose not to extend an increase in the number of subsidised mental healthcare services.
What would help in the budget?
Significant investment in increasing the availability and accessibility of mental healthcare services.
Increasing funding to evidence-based community mental health and wellbeing support including dedicated youth programs.
Housing
Young people make up at least a quarter of people experiencing homelessness, yet there is currently no federal funding dedicated specifically for youth homelessness.
Most young people access housing through the private rental market as they have long been priced out of buying their first home. However, the maximum amount of Commonwealth Rental Assistance (CRA) is less than $160 per fortnight despite rental prices increasing by 14.6% in 2022 to an average of $550 per week.
The interim Federal Budget offered no support to renters and since then the rental crisis has only gotten worse. The Federal Government has committed funding to increase social housing stock, young people represent less than 3% of tenants in social housing and are unlike to equally benefit.
Decades of policy has supported people to invest in housing, which has resulted in young people being forced to rent permanently. Federal housing policy like negative gearing has worsened housing affordability and has also facilitated a transfer of wealth from young to older people.
While there is no quick fix to Australia’s rental crisis, there are options to better support young people to afford housing. Reform to these policies would begin to provide rental price relief as well as begin to address intergenerational inequality.
What would help in the budget?
Funding for youth-specific homelessness services including for prevention and early intervention.
Increasing the rate of CRA available.
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.
