Budget backs young people with nowhere to live

Federal Treasurer Jim Chalmers is unlocking social housing for over 4,000 young people with the $60 million investment to create the new National Youth Housing Supplement.

The reform follows three years of advocacy by the Home Time Campaign, supported by over 180 community organisations, peak bodies, researchers, industry groups and unions.

Importantly, it has been guided by a group of young advocates with lived experience of homelessness and backed by thousands of ordinary Australians from all parts of the country.

The National Youth Housing Supplement fixes a structural flaw in Australia’s housing system that has discouraged providers from offering tenancies to young people and disadvantaged youth housing proposals in funding rounds.

This flaw, known as the Youth Housing Penalty, makes young people financially unviable tenants for community housing providers, paying just $86.52 a week in rent compared with $186.33 for someone on the Age Pension. It has meant generations of young Australians haven’t been able to access social housing to escape homelessness. Today, only around 2% of social tenants are under 25 despite young people making up almost 15% of Australians experiencing homelessness.

The Youth Housing Penalty was identified through research commissioned by the Home Time Campaign and conducted by the University of New South Wales in 2024.

Further modelling commissioned by Homelessness Australia and conducted by Equity Economics shows that for every 1,000 young people housed, the Federal Government recoups over $30 million through additional tax revenue and reduced spending on income support, homelessness, health and family violence services.

Quotes attributable to Shorna Moore, Home Time Campaign Spokesperson & Head of Policy at Melbourne City Mission

“This Federal Budget invests in the futures of young Australians. It fixes a flaw in our housing system that has harmed young people for decades. The Youth Housing Supplement is smart policy, unlocking doors to social housing, saving lives and providing lasting economic benefits.”

“Home Time was formed because kids and young people with nowhere to live were being forgotten by policy makers. This Budget turns the page on that chapter and we look forward to a new focus on intergenerational housing equity.”

Quotes attributable to Kate Colvin, Homelessness Australia CEO

“This is a hard-won win for young people who have been failed by a system that catches them in crisis but never houses them. The Federal Government understands that this delivers both intergenerational justice and an improved budget bottom line. From today, thousands more young Australians will get the foundation they need to improve their lives.”

“Our thanks go to every young person who shared their story, every provider who made the case, and the parliamentarians who carried this reform across the line. I congratulate the Federal Government for taking action to fix housing for young people.”

Quotes attributable to Atlas, Home Time Youth Advocate

“This Youth Housing Supplement is an incredible investment from the Federal Government in on-the-ground action that will make it easier for young people to get out of homelessness and find safety.”

“I was in and out of homelessness for 10 years, and in those years, I saw too many people lose their lives. Kids who died on the streets, kids who never truly had a chance to find anything else. Investments like this one will save lives.”

“I can’t fully articulate what this supplement means for the young people who are currently experiencing homelessness, the people who have become so accustomed to falling through the cracks in this system.”

“This subsidy is just the first step of many in the changes we need to create a truly equitable system – but for the first time in a long time there is hope.”

Quotes attributable to Special Envoy for Housing, Josh Burns MP:

“The youth housing penalty is a long-standing problem that has left vulnerable young people unable to access social housing.”

“Investing in young people accessing safe and secure homes is the most powerful way we can break the cycle of homelessness.”

“All the evidence shows that with support earlier in life, a young person is less likely to need social housing when they are older.”

“This reform would not have been possible without the hard work of the Home Time campaign and young people who have experienced homelessness across our country, who have led the call for system reform. I’m proud that our Government is answering that call.”