Young Australians are being set up to fail

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Young Australians are being set up to fail
An uphill battle from the start: How soaring costs, a punishing housing market, and shrinking opportunities are defining a generation of young Australians. – demo.burdah.biz.id

Young Australians Are Being Set Up to Fail

A quiet crisis is unfolding across Australia. Young people are facing a future where they are projected to be economically worse off than their parents, but the struggle is not shared equally. While a cost-of-living crisis, housing unaffordability, and poor job security affect an entire generation, a deeper divide is emerging—one that separates those with family wealth from those without.

Economists are sounding the alarm on intergenerational inequality. The issue has become a policy priority for the Federal Government and a recognized threat to markets by the private sector. The core of the problem is a system where a young person’s future may depend less on their effort and more on who their parents are. This shift challenges the very idea of Australia as a land of equal opportunity.

A Generation in Survival Mode

Recent data paints a grim picture of the economic pressures on young Australians. Ambition is being replaced by survival. The 2025 UN Youth Australia Youth Representative Report, which gathered insights from over 5,000 people aged 12 to 25, found the cost-of-living crisis is now the defining feature of their lives.

This bleak outlook is confirmed by other studies. Monash University’s latest Youth Barometer Survey revealed shocking statistics. It found that 85 percent of Australians aged 18 to 24 had experienced financial hardship in the past year. Nearly 80 percent believe they will be financially worse off than their parents. These aren’t just numbers. They represent real people making impossible choices between paying rent and buying groceries, or putting dreams of education and family on hold indefinitely.

Research from Deloitte earlier this year showed that more than four in ten young Australians feel they are missing out on their youth entirely due to economic and political pressures.

The Great Divide: Not All Youth Are Struggling Equally

The widespread hardship facing the younger generation hides a more troubling truth. Inequality is not being distributed evenly. While most young people are doing it tough, the wealthiest among them have seen their wealth skyrocket by an astonishing 1700%. Those from less affluent families bear the brunt of the crisis, facing poorer outcomes and having far fewer safety nets.

This creates a two-tiered experience of youth. For some, family assets provide a buffer against economic shocks. For others, a single unexpected bill can lead to a spiral of debt and instability. The gap between these two groups is widening, creating a situation where social mobility becomes increasingly difficult for those born without a head start.

The $3.5 Trillion Inheritance Boom

Australia is on the verge of the largest intergenerational wealth transfer in its history. An estimated $3.5 trillion is expected to pass from Baby Boomers to younger generations over the next two decades. This massive shift of assets, including residential property, superannuation balances, and business investments, will profoundly reshape the nation’s economic and social fabric.

This transfer threatens to create a new class of wealthy individuals whose prosperity is not earned through their own work. If you are born into a family with property and assets, your financial future is likely secure. If not, catching up to those who won the inheritance jackpot will be nearly impossible, regardless of hard work or education.

What is currently seen as intergenerational inequality could evolve into a permanent, society-wide class system. The risk is an economically polarized nation with very little opportunity for movement between the haves and the have-nots.

A Crossroads for Australia’s Future

Australia faces a fundamental choice. It can allow inherited privilege to dictate wealth and wellbeing, or it can pursue a fairer path that gives every young person a genuine chance at a secure life. This is not just an economic debate; it is about the core values of the society Australia wants to become.

Solutions have been proposed to level the playing field and reward effort over inheritance. Experts suggest a multi-faceted approach is necessary to address the crisis:

  • Bold Tax Reform: Re-evaluating tax laws to create a more equitable system.
  • Reformist Housing Policies: Prioritizing affordability and implementing measures to penalize speculation.
  • A Stronger Welfare System: Guaranteeing fair access to essential services for all.
  • National Inequality Targets: Setting clear goals to motivate action and hold the government accountable.
  • Equality in Education: Ensuring everyone has the opportunity to succeed, regardless of their background.

The critical question remains whether Australia possesses the political will to implement these changes. The decision made today will determine if the nation advances for the benefit of all its citizens or just a fortunate few.