Federal Budget unlocks housing for thousands of young people

Last week's Federal Budget announcement will deliver a breakthrough for young people experiencing homelessness, with a $60 million investment over 4-years to create a new National Youth Housing Supplement.

The supplement is expected to unlock social housing for more than 4,000 young people by fixing a long standing flaw in Australia’s housing system known as the Youth Housing Penalty.

As one of more than 180 organisations in the national Home Time Campaign coalition, MCM (Melbourne City Mission) has played a leading role in driving this reform through the strength of its policy and advocacy work. Working closely with young people and partners across the sector to elevate the issue of the Youth Housing Penalty onto the national and political agenda, commissioning the research, shaping the policy solution and advocating for this significant systems change.

What is the Youth Housing Penalty?

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. It refers to policy settings that have made young people financially unviable tenants in community housing.

“Young people receive much lower income support than adults, meaning housing providers receive significantly less rent if they house a young person. This results in an economic disincentive for providers to offer tenancies to young people, despite high levels of need,” said MCM CEO, Paul Wappett.

Today, only 2% of social housing tenants are under 25, even though young people make up almost 15% of Australians experiencing homelessness.

“There has been a glaring systemic gap that results in shockingly bad outcomes for young people without safe and secure housing. We have pushed to fix that gap over a long time, and now the opportunities to house more young people have opened. We are all incredibly proud of this outcome”.

Supporting the futures of young people

Investing in youth housing earlier not only prevents homelessness, but it also delivers strong long term savings by reducing pressure on crisis services and increasing participation in education and work.

“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 delivering lasting economic benefits,” said MCM’s Head of Policy, Advocacy and Government Relations and Home Time Campaign Spokesperson, Shorna Moore.

Why this matters

Housing is the foundation for safety, wellbeing, education and employment. When young people are locked out of housing, the impacts can last a lifetime.

“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…for the first time in a long time there is hope.”
- Atlas, Home Time Youth Advocate

This new National Youth Housing Supplement means more young people can move out of homelessness and into stable housing with the support they need to rebuild their lives.

While more work remains, this reform marks a critical step toward creating a fairer housing system that gives young people a genuine chance to thrive.

Learn more about the Home Time campaign at www.hometime.org.au.