Homelessness Australia has called for Youth Allowance and other benefits to be increased to the aged pension rate of $80 a day, along with a 60 per cent increase to Commonwealth Rent Assistance.
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A new Homelessness Australia analysis cross-referenced salary figures from the Department of Social Services against rental prices nationwide.
In March 2023, the total weekly income for a 16-17-year-old sharing a property rental in Hobart was $337.30, and rent accounted for 74 per cent of their income.
In March 2024, the weekly income for a 16-17-year-old had risen by $48.40, and their rent amounted to 60 per cent of their income, which is still much too high, according to Homelessness Australia's CEO Kate Colvin.
"One of the big issues across the country driving increased youth homelessness is the rising cost of rent and the record low vacancy rates.
"We have seen rents increase significantly in Launceston and across Tasmania.
"It's just becoming less affordable for someone on a low income to find somewhere to rent.
"Our housing system is irrevocably broken.
"Anyone caught in the vice-like grip of this housing crisis finds it highly stressful, but young people receive lower income support than older people, putting them last in the pecking order for securing a tenancy.
"As these figures [from the analysis] show, the housing system is financially stacked against young renters," Ms Colvin said.
Poverty trap
Ms Colvin strongly believes that policy choices can actively conspire to push young people towards homelessness.
"Right when they need stability to take their first steps in employment or further education, they are pushed into poverty, resulting in social exclusion, mental illness and lost lifetime productivity.
"Unless we make better choices, the costs and consequences of our warped housing system will only escalate for young people and the broader society.
"Increasing Youth Allowance and Commonwealth Rent Assistance is not an act of charity or generosity.
"It is a hard-headed investment in young people's future and the nation's productivity.
"We need to get our head around the wisdom of preventing homelessness rather than dealing with the escalating social costs of allowing youth homelessness to escalate," Ms Colvin said.
Useful contact
Homes Tasmania CEO Eleri Morgan-Thomas said, "Anyone experiencing or at risk of homelessness is encouraged to contact Tasmania's front door service for all housing assistance, Housing Connect, at 1800 800 588, 24 hours a day, seven days a week."