Too many young Tasmanians are experiencing financial stress resulting in poor physical and mental health outcomes, according to the state's peak body representing the state's youth.
The Youth Network of Tasmania have joined a growing list of advocates calling on the federal government to raise the rate of Newstart and Youth Allowance.
With one of the highest youth unemployment rates in the country, YNOT chief executive Tania Hunt said many young Tasmanians were living well below the poverty line.
"We know young people are experiencing financial stress," she said.
"The majority of young people are struggling to find suitable accommodation in Tasmania.
"Many young people will pay up to 50 per cent of their youth allowance on accommodation.
"What that results in is an inability to pay for essential services, such as healthcare, food, utlities, public transport.
"Consequently they can experience poor physical and mental health outcomes."
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The Morrison government says it has no plans to increase unemployment payments other than through biannual indexation.
However Ms Hunt said the government's focus of getting more youth into jobs would mean nothing if Newstart continued to be seen as "transition support" during short periods of unemployment.
"The rhetoric and public discourse is about [Newstart] as a short-term income support payment for while they find work, but we know that's not the case," she said.
"We know there is structural and systemic issues that impact on young people gaining employment in the community.
"Many young people actually require income support for a longer period of time, to actually secure that employment."
Ms Hunt said it was also important to acknowledge that many young Tasmanian job seekers lived in rural and remote communities and faced a unique set of barriers.
"It's really hard to find employment when you haven't got a secure roof over your head," she said.
"You can't afford appropriate clothes for an interview and you can't afford the transport to get there.
"It's important that we acknowledge that many of our young people in Tasmania, live in communities that are outside of the central business district ... that don't have the best public transport options.
"So we don't want to put more barriers in place to create disadvantage for young people."