Payments for Youth Allowance and JobSeeker (both inclusive of Commonwealth Rent Assistance* and Energy Supplement) are currently $230 and $175 per week below the Henderson poverty line respectively as of April 2025 (Melbourne Institute 2024, Services Australia 2025). Increases to Youth Allowance and JobSeeker in the Australian Government’s 2024 budget, while welcome, fail to match the estimated weekly expenditure of $544 required for a single unemployed person under 35 living in shared accommodation to cover essentials such as rent, food, energy, and transport (Anglicare Australia, 2024). The Australian Council of Social Services (ACOSS) show that Australia’s income support payments remain amongst the lowest in the OECD (ACOSS, 2024). 

 A recent report by Orygen revealed that young people faced with financial insecurity are three times more likely to report poor personal wellbeing, including lowered mental health outcomes and a negative outlook on the future, and suggests this can be partially alleviated by raising income support. The report also highlights how financial instability can impact study, noting how young people who work while studying experience more stress than those who do not. The adverse effects of working while studying are also flagged in the Australian Government’s Australian Universities Accord Final Report (Department of Education, 2024). The Universities Accord report emphasises that adequately increasing income payments (particularly Youth Allowance) is important in enhancing equity and inclusion for students and enabling young people experiencing marginalisation to successfully participate in higher education.   

*We calculated this using the “single, sharer” rate of pay, as young people are more likely to live in sharehouses than in their own place (the difference is $70 per fortnight.) 

Political Responses

There has been minimal response from Albanese Labor Government on raising the rate of income support payments other than spruiking a 10% increase in Commonwealth Rent Assistance which was announced prior to Labor’s 2025-26 Budget. This has been in effect since April 2025. 

On a recent episode of ABC’s Q+A show, Clare O'Neil, the Minister for Housing and Homelessness, said Labor won't be supporting another boost for JobSeeker. Minister O’Neil told the audience "Please understand every budget we come to, we are absolutely trying to find every single way that we can help people relieve pressures.” Greens Social Services spokesperson Senator Penny Allman-Payne has commented “JobSeeker, Youth Allowance, the DSP – all of these social security payments remain below the poverty line today.”  

There has also been minimal response from the Coalition on income support - aside from Michael Sukkar, Shadow Social Services Minister who appeared on ABC’s Q+A, to explain that while political parties always look to increase social security payments, it's sometimes not possible. Sukkar asked the Q+A audience "How much do we shake all of you down for more taxes... that can enable us as far as social benefits." He answered this, stating "Is it ever going to be enough? No."

Policy Recommendations

• A substantial increase in Youth Allowance and Jobseeker payments to at least $88 per day, aligning with the Henderson poverty line to ensure basic living standards. 

• Increase the amount of income that can be earned before Youth Allowance and Aus Study payments are reduced to allow young people to balance work and study. 

• Increase the maximum rent threshold of Commonwealth Rent Assistance by 60% so that payments are more than doubled to substantially reduce rental stress. This is particularly important for young people as 86% of young people aged 15-25 are renters.