Australia’s cost of living crisis continues to be a significant issue. The cost-of-living crisis is not just of economic concern, it is a major social determinant of health, having profound negative impacts on the protective factors for mental health and wellbeing while simultaneously increasing the risk factors for mental ill-health. Young Australians are particularly vulnerable.

From soaring housing prices to rising everyday expenses and wages that can’t keep up, the cost-
of-living crisis is placing enormous pressure not only on individuals, but also on organisations who
support those in need. For young people, who are stepping into independence, pursuing education or careers, and dreaming of home ownership, these pressures are leading to the ‘Australian dream’ feeling increasingly out of reach.

Key findings

• The inability to access safe and stable housing is a significant risk factor for mental ill-health, with housing insecurity, which can include the risk of homelessness, poor living conditions, and frequent moving, exposing young people to chronic stress, social disconnection, and anticipatory anxiety about where they will live next.
• The shift toward casualised work increases several risk factors for poor mental health among young people, including underemployment, unpredictable hours, unstable income and ongoing job insecurity.
• Food insecurity is not only a financial issue, but a critical determinant of both physical and mental health. For many young people, the uncertainty of whether there will be enough food to eat creates ongoing stress and anxiety linked to financial strain within the household.
• Limited access to health care can mean that young people go without timely treatment or support for both mental and physical health concerns, which may worsen symptoms, increase distress, and affect their ability to engage in study, work and daily life.
• Many young people report feeling socially excluded, missing networking opportunities and experiencing a reduced sense of belonging, particularly when rising costs limit participation in social activities.

Policy recommendations

1. Strengthen student income support payments
2. Improve public transport affordability
3. Engage in broader structural tax reform
4. Expand pathways to entry-level employment.