‘Locked out’: First Aussie generation at risk of being worse off

Today’s young people risk becoming the first generation in modern Australia to be worse off than the one before them, according to new research.

They are earning less, owning less, carrying more debt, and being locked out of secure housing, Anglicare Australia’s Falling Behind: Young People and Australia’s Growing Divide report found.

Key economic and health indicators reveal a stark contrast between younger Australians and older ones, highlighting a breakdown in the longstanding promise of progress between generations.

Today’s young people are the first generation to earn less than the previous one at the same age, and they’re still behind when they turn 30.

They are being forced to cut spending on both essentials and luxuries, while older people are increasing spending across the board.

Younger Aussies are also losing out in finding decent, affordable housing; home ownership for 25 to 34 year olds is below 40 per cent, a level not recorded since the 1940s.

And none of the 48,776 rental listings was affordable for someone on the Youth Allowance payments scheme.

Researchers warn the impact is not only financial, with the age group’s mental health and wellbeing also affected.

Data from Anglicare Australia services shows young people are more than twice as likely as over-65s to experience serious psychological distress.

The promise of studying and working hard to secure a stable financial footing is far from reality for millions of young people, says Anglicare Australia Executive Director Kasy Chambers.

“Young Australians are doing everything we ask of them,” she said.

“They are studying, working and contributing. But they are earning less than the generations before them, being locked out of housing, and struggling to build the security that past generations took for granted.

“The economic foundations underneath them have shifted.”

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Chambers says the federal government could throw younger people a financial lifeline by reforming Youth Allowance payments.

“We have a social security system that literally says a young person needs less money to live on simply because of their age.

Our findings show they can’t afford rent on Youth Allowance anywhere in the country.”