THE federal budget will have "damaging outcomes" for Tasmania's young people, according to the state's peak youth body.
There are fears in the community sector that budget measures denying young people welfare for the first six months of joblessness will put them into "vulnerable positions".
Tasmania's youth unemployment rate is locked at 17 per cent, and would be hit hard by Treasurer Joe Hockey's strict "earn or learn" policy.
National Job Link general manager Natasha Brewer said the approach was too "black and white".
"It doesn't take into account the endless barriers that young people have, one of those being lack of support," Ms Brewer said.
"Those that are able to access employment will go for anything and everything, just so they can claim an income," she said.
"But those who don't know how to do that, or have barriers, the gap is going to get wider," she said.
Youth Network of Tasmania chief executive Joanna Siejka said it was the wrong approach, and young people had been "devalued" by the budget.
"It's presuming young people don't want to work," Ms Siejka said.
Ms Siejka said there would be more demand for emergency relief.
"It's going to put them in vulnerable positions," she said.
Beacon Foundation state manager Anthony Stewart said "tearing up a cheque" would not encourage young people to find work.
"We want to encourage kids to look for employment, but cutting allowances, I don't think that's going to address the real issues," Mr Stewart said.
Tasmanian Council of Social Service chief executive Tony Reidy said Tasmania would suffer disproportionately from the "attack" on access to welfare.
"The Treasurer says this budget asks everyone to contribute a little bit, but the bulk of the contributions are being made by people with nothing to give," Mr Reidy said.
Premier Will Hodgman said the government should be finding ways to get young people into study or work.