The Albanese Government’s 2026-27 Federal Budget has taken significant steps toward fixing the youth housing penalty, unlocking housing for thousands of young Australians facing homelessness.
The budget includes a $59.4 million investment to bridge a longstanding funding gap that made it unviable for community housing providers to house young people on the Away from Home rate of Youth Allowance and ABSTUDY. From early 2027, 2,325 young people will receive a $6,000 top-up payment, growing to more than 4,000 people by 2030.
Over 40,000 young people face homelessness every year, almost 25% of Australians experiencing homelessness. Despite this only around 2% of social tenants are under 25. The Youth Housing Penalty has been a key barrier to changing that.
Social housing providers receive around 46% less rent for housing a young person than an aged pensioner, just $86.52 a week versus $186.33, leaving young people effectively priced out of community housing.
“This budget takes a vital step toward fixing that. For the first time, young people on Youth Allowance and ABSTUDY will be viable tenants,” said Foyer Foundation co-CEO Corin Moffatt.
“It’s smart, considered policy. But it’s a first step. Tens of thousands of young people still experience homelessness, and we’re committed to the work ahead.”
Young people across the Foyer network, the Foyer Foundation and members of FoyerInvest have been proud supporters of the Home Time campaign, which has driven this change, putting lived experience at the centre of the push for reform.
“Good policy happens when the sector speaks with one voice and listens to young people who experience homelessness,” said co-CEO Liz Cameron-Smith.
“Years of collective effort have resulted in a solution that works. The leadership of Melbourne City Mission and Homelessness Australia has been central to that and gives us real momentum to build on into the future.”
For more information and to arrange interviews, please call Shona McPherson
on 0410 293 844 or email [email protected]
