New report finds Youth Allowance doesn't cover rent, food and transport for young people living out of home.
A new report from Anglicare Australia, Falling Short: How Youth Allowance leaves people behind, has found that the Australian Youth Allowance doesn't give people enough to cover the basics. Today, young people are entering adulthood at a time when basic living expenses are increasingly out of reach.
The report looked at what young people aged 18 and over receive from Youth Allowance each week and compared this with three costs most people can't avoid: rent, food and transport. The findings showed that Youth Allowance is simply not enough to cover the essentials. Currently the system heavily relies on the assumption that parents and families can subsidise inadequate payments. For young people who can't live with family, the money runs out before the week does.
What is Youth Allowance and how far does it go?
Youth Allowance is a government income support for full-time students and apprentices aged 24 or younger. It's designed to help young people cover basic living and study costs while they are actively studying, training or looking for work.
The report looked at three young people in different living situations.
Living situation | Weekly income | Rent, food and transport | What's left each week |
Living with parents, paying no rent | $241 | $207 | $34 left over |
Renting a room in a share house | $413 | $465 | $52 short |
Renting a one-bedroom place alone | $451 | $832 | $382 short |
Weekly income includes Rent Assistance, and extra Centrelink payment to help with rent.
These figures don't include other essential expenses such as power bills, phone and internet, health care, clothes or study costs. The figures are also on the conservative side – assuming that living at home and paying no rent will also mean half the usual food costs. The share house room is assuming that rent is $178 per week, which is on the cheaper side of the median room cost for many areas. For a young person living alone, rent of $545 per week is more than their entire weekly income and leaves them at a staggering weekly shortfall of $382.
What does this look like in everyday life?
Young people can't spend money they don't have. So, they go without.
Anglicare Australia's research shows skipping meals and buying cheaper, less healthy food options are among the first cuts people make when on a low income. The report finds that young people on Youth Allowance are also likely to put off seeing a doctor, live in unsuitable housing, rely on emergency relief or take on debt.
The current systems in place only work effectively when parents and families quietly pay and provide for the rest. Not every family can. Many young people can't live at home due to situations involving family breakdown, violence, or overcrowding. This leaves them at a significant disadvantage in their daily life.
"If you're a young person in a private rental, if you're a young person that cannot get support from your family, you are way behind in terms of ability to exist and meet your essential costs," said Anglicare WA CEO Mark Glasson.
What needs to change
Anglicare Australia is calling for two changes:
- End the lower payment rate for young people. Young people over the age of 18 living independently should get the same payment as other adults. Young people don't get a discount on rent or at the supermarket. Their support shouldn't be discounted either.
- Raise all working-age income support above the poverty line.
"The first thing we need to do is make sure that Youth Allowance payments meet the poverty line," Mr Glasson said. "We need to make sure that we give young people enough money to survive and to meet their essential living costs."
Read the full Falling Short report (PDF)
Anglicare Australia is the peak social advocacy organisation representing more than 40 independent member organisations, including Anglicare WA.
