young people in the budget

The 2026-27 State Budget primarily ensures the delivery of the Malinauskas Government’s election commitments. This includes budget measures focused on increasing housing supply and addressing cost-of-living. However, YACSA maintains that further sustainable commitment is needed to support young people specifically with access to safe and affordable housing – particularly through reforms to rental adequacy and affordability, as well as targeted investments to address the rising cost of living for young people.

Overall, the Budget shows government revenue and expenditure at historically high levels relative to the size of the state economy. While not inherently problematic, continued growth in state debt is concerning as increasing interest payments consume a greater share of government expenditure. This reduces the capacity to invest in essential services, programs and community supports. Long-term rising debt risks exacerbating existing intergenerational inequality by shifting a greater financial burden onto future generations. Young people may face the dual challenge of higher future tax obligations alongside reduced access to government-funded services and programs, potentially limiting opportunities and outcomes for those who will inherit the consequences of current fiscal decisions.

The Budget features measures that will support young people and the youth sector particularly by providing investment in education and participation. However, while YACSA is encouraged to see these inclusions, we are disappointed that several vital and longstanding areas of need are not prioritised in this budget. Examples include the need to expand youth-specific homelessness support, increased youth-specific community-based psychosocial or mental health support and sustainable sector funding. 

YACSA will continue to advocate and work with government to ensure decision-making benefits young people and the youth sector that supports them.

Significant budget measures:

• $7 million over four years to establish a portable rental bonds scheme

• $30 million over five years to upgrade 300 vacant SA Housing Trust houses 

What this means:

The establishment of a Portable Rental Bond Scheme is a positive step that will help reduce financial hardship for renters by allowing bonds to be transferred between rental properties. This measure is likely to benefit many young people, who are disproportionately reliant on the private rental market to access housing. While a welcome measure, it remains the only measure in the budget providing relief to renters, despite ongoing challenges around affordability, accessibility and security that are likely to have a disproportionate impact on young renters.

The repair of 300 currently vacant public homes to make them liveable will provide an increase in public housing supply. Nevertheless, a youth-specific approach is needed to ensure young people have equitable access to public housing and are not overlooked within the broader housing system.

YACSA is disappointed the budget did not include investment to establish a dedicated youth housing and homelessness strategy, despite young people accounting for almost 25 per cent of people experiencing homelessness. Without such a strategy, there is a risk that youth-specific needs continue to be overlooked within broader housing and homelessness responses. YACSA is calling for greater investment in youth-specific homelessness services, improved access to public and social housing for young people, and targeted support for young renters facing an increasingly unaffordable private rental market.

Significant budget measures:

• $28 million over four years for specialised mental health units at RAH, LMH and NH

What this means:

Investment in specialised mental health crisis units at the Royal Adelaide, Lyell McEwin and Noarlunga hospitals is a welcome step towards providing alternatives to emergency departments for people experiencing mental health crises. These services have the potential to improve access to more appropriate and responsive care for young people at critical times.

Young people continue to face long waitlists, rising out-of-pocket costs and limited access to services, creating substantial barriers to receiving timely support. YACSA is particularly disappointed that the State Budget does not include funding for evidence-based community prevention, early intervention and wellbeing initiatives, despite the ongoing overrepresentation of young people experiencing poor mental health and declining wellbeing.

Immediate investment is needed to address the service gaps identified in the Unmet Need for Psychosocial Support report and ensure young people can access the support they need before reaching crisis point.

Significant budget measures:

• $174 million over four years for free public education (from 2027)

• $76 million over four years for ‘Keeping Kids Off Screens’ including: 

  • Free school camps for year 7 public school students  

  • One term of before or after-school activities in public schools   

  • ‘Come and try’ sessions during holidays via Try-Play-Belong  

  • $200 sports voucher program extended to 16–18-year-olds  

• $150 million over four years to establish three new tech colleges at Murray Bridge, Marden and Gawler 

• $29.5 million over eight years to build workforce capacity by creating 1,000 new pathways to enter the construction workforce

What this means:

These measures will provide benefits for young people and their families across South Australia. The removal of materials and services charges for public school students will help ease the financial burden of education on some families experiencing cost-of-living pressures. However, this measure will not equitably support low-income families receiving School Card concessions. While the removal of materials and services charges will provide some relief, it does not represent a direct investment in education. It is therefore vital that activities, programs and learning opportunities within schools are maintained and adequately resourced to ensure students receive a high-quality education.

Increased investment in housing construction and workforce pathways will expand opportunities for young people to enter the construction industry and support future housing supply. Additional funding for vocational education and training, including new technical colleges, will further strengthen pathways into training, skills development and employment.

Investments in providing alternatives to online engagement for young people will create valuable opportunities for young people to connect, participate and engage in their communities, supporting their wellbeing and social inclusion. However, there remains a critical gap in support for disengaged and at-risk young people, with no additional investment in pathways that facilitate re-engagement and sustained participation.

YACSA strongly supports the investment in education, including measures that encourage young people to connect, participate and engage in their communities through the ‘Keeping Kids Off Screens’ initiative. We look forward to working with the Government and relevant departments to ensure these investments deliver meaningful and equitable outcomes for all young people.

Significant budget measures:

• $250,000 per annum over four years to re-establish the Young Workers Legal Service 

• $1 million in 2026-27 to temporarily freeze metro public transport until at least 1 October 2026 

What this means:

The measure to freeze metroCARD fares at current levels until at least 1 October 2026 is welcome as it will provide some relief from cost-of-living pressures and help young people remain connected to education, employment, services and their communities. While this temporary support is important, further investment is needed to address the structural drivers of rising living costs that continue to affect young people disproportionately.

The re-establishment of the Young Workers Legal Service is another positive investment as it will provide young people with access to vital support, advice, advocacy and education to help them navigate workplace issues and exercise their rights at work.

Despite these positive measures, YACSA is concerned that the budget does not include any additional funding to support the implementation of the South Australian Youth Action Plan. Without dedicated investment, there is a risk that the commitments and priorities identified through the Action Plan will not translate into meaningful outcomes for young people. Continued investment is needed to ensure the Action Plan can effectively drive coordinated action across government and deliver tangible improvements in the lives of young South Australians.

Significant budget measures:

• $8.7 million over four years for annual indexation for eligible not-for-profit organisations 

• $100,000 per annum over four years for Gold Foundation - a not-for-profit organisation providing support for young people on the autism spectrum and their families

What this means:

Alongside other state community sector peak bodies, YACSA advocated for a 5.4 per cent indexation increase to better support organisations responding to growing demand, increasing service complexity and rising service delivery costs. The Budget includes 3.3 per cent indexation for eligible not-for-profit sector organisations - a needed recognition of the growing costs facing the community sector, but well short of the 5.4 per cent sought. This shortfall means the budgeted increase is unlikely to adequately address the challenges experienced by the youth sector. Further clarification is also required regarding whether all non-government health and community services are included within the scope of the increase.

Funding provided to the Gold Foundation recognises the vital role organisations such as the Gold Foundation play in supporting young people living with autism and their families. Investments in specialist community-based supports are important to ensuring young people can access the services they need to participate fully in their communities and achieve positive outcomes.

While an increase for sector indexation is positive, YACSA maintains that the youth sector is underfunded and undervalued, with ongoing challenges including short-term funding arrangements and a continued emphasis on program-specific service delivery rather than integrated, holistic responses that meet the diverse needs of young people.

YACSA is disappointed that the 2026–27 State Budget contains no additional investment in youth justice and provides the lowest level of funding to youth justice in a decade. At a time when there is growing evidence supporting the effectiveness of diversion and alternatives to incarceration, the Malinauskas State Government's continues to focus on the incarceration of children and young people. This represents a significant missed opportunity to invest in strategies that improve outcomes for young people and enhance community safety.

Evidence consistently demonstrates that diversion initiatives and alternatives to incarceration are far more effective in reducing offending behaviour and preventing young people from entering or re-entering the youth justice system. Despite this, investment in diversion and alternatives to incarceration remains insufficient, limiting opportunities to intervene early and provide young people with the support they need before issues escalate.

YACSA remains concerned that South Australia is falling behind in progressing reforms to raise the minimum age of criminal responsibility and align youth justice policy with contemporary evidence and human rights principles. Greater investment in diversionary programs, therapeutic responses and alternatives to incarceration must be prioritised to reduce offending behaviour and to improve community safety.

YACSA remains committed to working collaboratively with the Malinauskas Government, young people and the broader sector while advocating for a youth justice system that prioritises prevention, rehabilitation and the protection of children and young people’s rights.

Significant budget measures:

• $8.5 million over four years to support the establishment of a commission to undertake statewide Truth-telling and Treaty activities. 

What this means:

Investment to establish a Commission for statewide Truth-telling and Treaty is a welcome investment and represents an important opportunity to advance reconciliation, justice and self-determination for Aboriginal people in South Australia. If designed and implemented in partnership with Aboriginal communities and guided by Aboriginal leadership, this measure has the potential to make a meaningful contribution towards addressing historical and ongoing injustices.

However, further detail is needed regarding the proposed process, consultation approach, governance structure and the extent to which the allocated funding is intended to support the establishment and operation of the Commission. As the initiative progresses, it will be critical that Aboriginal voices are central to its development and implementation to ensure the process delivers meaningful outcomes for Aboriginal peoples and communities across the state.

Young people and the youth sector, as well as specific budget measures to support them, were largely absent from the 2026-27 SA State Budget. 

YACSA remains concerned that while young people in our state experience issues such as overrepresentation in homelessness, declining wellbeing, increased rates of suicidal ideation , isolation, which may be compounded for some young people by the social media ban, alongside and a cost-of-living crisis, investment in much-needed foundational support for young people remains insufficient. 

At the same times, the youth sector continues to operate under financial strain from short-term and limited funding, growing demand for support, increasing complexity of young people and a lack of recognition. The sector is an opportunity for government to invest in an evidenced cost-saving holistic approach to supporting young people. Without sustained investment in the sector, they cannot adequately provide safe and effective support to young people in need. 

YACSA will continue to advocate for the State Government to recognise the benefit of the youth sector and invest in it appropriately and remains committed to working collaboratively with the Malinauskas Government to ensure young people are supported in South Australia.