Introduction
Poverty is one of the strongest predictors of poor health, educational, and social outcomes and is therefore a powerful lever to address intergenerational disadvantage. Not only is it a breach of our international human rights obligations to children, but addressing childhood poverty is less expensive than addressing its long-term repercussions. For example, modelling in the Australian context found that Australians are each paying $15 billion every year for services that could have been avoided had children and families in need been provided with early and appropriate help. In a country like Australia, we have no excuse for allowing children and young people to go without food, shelter, and educational essentials. Investing in children and young people yields a ‘triple dividend’ – enhancing health and wellbeing now, for their adult selves, and the health and wellbeing of their children.
Yet 1 in every 6 children in Australia lives in poverty. Younger children have told us that for them, poverty causes family tension, contributes to social exclusion, educational struggles and bullying, and makes spending special time with their families hard (such as going on holidays or out to dinner). Adolescents and young adults tell us that poverty often means going without food and essential items. It creates challenges for their career aspirations, and their ability to plan for the future (like buying a house). 9 in 10 young adults experienced financial difficulties at some point during the last 12 months, and more than half believe they will be financially worse off than their parents. In extreme situations, poverty has led to homelessness and criminal activity, such as stealing food.
Here we have identified the Top 10 Reforms needed to ease the cost of living by bringing together the views of children and young people and the latest research, ensuring that all young Australians and future generations will have the opportunity to thrive now and into the future.
1. Safety net payments should cover the bare minimum – not less.
Poverty in early childhood can have profound impacts on children’s developing brains – a key mechanism by which childhood poverty contributes to long term health, educational, and social outcomes. We learned from the increase in the Jobseeker payment during the height of the COVID-19 pandemic that social security payments are an effective mechanism to address poverty, boost the economy, and create jobs. Furthermore, social security payments are of greatest benefit to those who need it most, including families with young children. Yet current social security payments do not provide enough for people who have slipped through the cracks to afford their basic needs, which can have long-lasting effects on children’s brain development and life opportunities. We therefore call for The Australian Government to develop and implement a transparent method of setting the level of social security payments that reports against the UN Convention on the Rights of the Child to ensure that children’s basic material needs are met. This should be coupled with a transparent reporting process for accountability. In the interim, we call for an immediate increase in Jobseeker, Youth Allowance, and related payments to $82 a day.
3. Increase food security.
Access to basic needs like food and clothing is a top priority for vulnerable young people, second only to the need for safe accommodation. Yet going hungry is common, especially among older youth, with about half of young adults going without food for a whole day due to money. Young people also report restrictions on type and variety or food due to cost, particularly fresh produce. Addressing food insecurity in a holistic way, by improving both financial support and access to resources, is essential for ensuring young people’s well-being and helping them thrive. Partnering with children, young people, and families to co-design solutions to improve food security is imperative to support their wellbeing.
4. Make mental healthcare universal.
Among young people with vulnerability, access to mental health services was among the top three most important services to keep them safe. Mental health challenges have been nominated as a significant factor in under- and unemployment and educational challenges for young people. We recognise that mental health is just as important as physical health, and therefore call for universal access to mental healthcare when it’s needed. A holistic approach is needed to cultivate positive mental health throughout children’s lives through strong antenatal supports, reorientating the education system and prioritising mental health services. This means removing the limit of 10 subsidised psychology sessions and instead providing unlimited access to gap-free mental health care – as is the case for GP and hospital attendances.
5. Disrupt intergenerational poverty by supporting career aspirations.
One of the biggest worries about the rising cost of living is how financial stress stops young people from reaching their study and career goals. Money challenges are one of the top barriers for Australians aged 15 to 19 trying to pursue work or study goals. The costs of education, rent, travel, and family expenses all contribute. This is a clear example of how poverty cycles continue across generations. To address this, we recommend partnering with young people to co-design ways to improve their access to affordable education and long-term career aspirations, thereby disrupting poverty cycles.
6. Address under- and unemployment.
Young people report being commonly affected by under- and unemployment, especially young people living with disability, those living in rural and remote areas, and those who are gender diverse. This leads to difficulty affording essentials like food, rent, social events, and other basic needs. Employment challenges compound the effects of the rising cost of living. About half of young people have been unemployed at some stage in the last year and more than half report insufficient employment. Reasons for unemployment included study commitments, mental health barriers and COVID-related job loss. We therefore recommend partnering with young people of diverse backgrounds to co-design ways to overcome employment challenges.
7. Improve public transport.
“Making cars the only viable form of transport for work, uni & meeting friends, you are locking me into a significant cost burden. I want cycle lanes, walkable streets, convenient public transport.”
“I want public transport, especially trains and metros to run all night Friday and Saturday. If I need to get an Uber home it’s too expensive to go out with friends!”
ARACY Young and Wise Network
Transport is a major barrier for young people. For many, these transport challenges compound existing cost-of-living pressures, creating obstacles that limit their ability to participate in their social and recreational networks and wider community. Young Australians are calling for greener, more affordable, and accessible options, such as walkable streets, dedicated cycle lanes, and public transport that runs overnight, particularly on weekends. Affordable, reliable, and sustainable transport isn’t just about getting from place to place; it’s about facilitating participation in education, work, health and other essential services, and living fuller, more connected lives.
8. Understand what poverty really means for young Australians.
Poverty in Australia isn’t clearly defined at a national level, and that makes it hard to address. The government needs to define what poverty actually means. We need a clear, agreed-upon definition that shows how many young people are struggling and how we are faring as a country over time. We, therefore, call for a nationally agreed definition to be developed and included as a key measure in the Measuring What Matters wellbeing framework.
9. Co-design services.
For young Australians with vulnerabilities, the main barriers to accessing services are cost and transport followed by a lack of trust and long waiting times. Not being listened to is also a significant barrier, particularly for First Nations young people and young people with disabilities. Other issues include difficulty navigating services and unsuitable opening hours. There is little value in providing services that are inaccessible to those who need them most. Young Australians emphasise that what matters most in services is how they are treated. The best way to make sure services are effective is through co-design with young people themselves, to ensure that services are affordable, accessible, open at the right time, welcoming, and sensitive to their cultural and other needs. Co-design means partnering with young people of diverse lived experiences not only to identify what services are needed, but also to design and implement them. This approach is essential to ensuring that services meet the real needs of young people, particularly those from complex backgrounds.
10. Listen to children and young people.
Poverty affects children and young people of all ages. There is robust evidence that incorporating lived experience, including that of children, works. Ask children and young people what they need and how they want to be supported and act on their insights. All stakeholders must ensure that dedicated opportunities to co-design solutions (and not just identify challenges) are provided and embedded in our standard ways of working. Listening will ensure that the processes and systems put in place to support children and young people with the cost of living are effective, suitable and culturally appropriate.
Conclusion
Addressing the cost of living challenges faced by children and young people in Australia requires a comprehensive and immediate response from the government, and is backed by a powerful economic and social argument. The reforms outlined here reflect the urgent needs of young Australians.
By prioritising housing affordability, food security, mental health support, and accessible career pathways, we can create an environment where young Australians have the resources they need to succeed now, into the future, and for generations to come. Listening to and collaborating with young people is key to ensuring that the solutions we implement are effective and meaningful.
Investing in the wellbeing of children and young people today will not only improve their immediate circumstances but also help break the cycle of disadvantage for future generations. The time to act is now, so all children and young people can thrive.
