In a challenging fiscal environment, the 2025–26 Victorian Budget has delivered continued investment across the youth sector – a welcome outcome. Youth Affairs Council Victoria (YACVic) is pleased to see retained funding for our core operations and critical programs like Healthy Equal Youth (HEY) and YACVic Rural, allowing us to continue showing up for LGBTIQA+ young people and those in rural and regional Victoria. YACVic also welcomes continued funding for key partners.
YACVic CEO Mary Nega said “We’re relieved to see ongoing support for young people and youth services in this budget, particularly continued funding for YACVic Rural and the HEY program, which are lifelines for young people in regional communities and LGBTIQA+ young people across the state.
“However, we know young people and the services they rely on, need and continue to ask for more than maintenance, in the face of rising costs, and the growing complexity of young people’s needs, especially when it comes to mental health, housing, and early intervention.”
While continued funding across youth services is welcome, YACVic is dismayed that the 2025-26 Budget once again fails to deliver a dedicated Youth Housing and Homelessness Strategy, despite young people making up a quarter of the state’s homeless population.
“One third of people seeking homelessness assistance in Australia are in Victoria, but we have the lowest proportion of social housing in the country. This is about dignity, without a roof over your head, every other aspect of life is harder. We urge the government to co-design a youth homelessness strategy with young people, as a matter of urgency,” said Ms Nega.
We welcome increased funding to strengthen Victoria’s mental health system in line with the Royal Commission. However, the government’s failure to deliver 500 promised housing places for young people with mental health challenges leaves a major gap in recovery support.
This budget includes major spending on youth justice infrastructure, including prisons, a disappointing decision when we know early intervention and wraparound supports are more effective and cost-efficient. We urge the government to shift its focus upstream and invest in the services that help young people avoid contact with the justice system in the first place.
“Victoria has the opportunity to lead the way in youth policy but we need a long-term vision grounded in equity, access, and care,” said Ms Nega. “This year’s Budget shows that while progress is possible, young people still face structural neglect in key areas of their lives. We look forward to working with the government to fix that – with young people leading the way.”
Quotes from young people:
“The most helpful people in my life haven’t always been teachers or doctors — it’s been youth workers. But those roles are always underfunded or temporary. If the government wants real impact, they should start by backing the people already doing the work on the ground.” – Mustafa, South Morang
“Young Victorians like me are tired of budgets that patch holes instead of fixing what’s broken. This one does nothing for those aged 18–25: no youth-homelessness funding despite 26.2 percent of people experiencing homelessness being aged 12–24 (with Aboriginal youth and young women aged 20–24 over-represented); no renter support as rents skyrocket; no transition-to-work programs amid rising unemployment; under-funded public schools while private schools receive 102.9 percent of their resource standard; and no climate-action measures for our generation. By walking past housing, education, jobs and climate resilience for young adults, this budget isn’t just letting us down—it’s risking our future. – Sophia, South-East Melbourne
"As young people we have called for greater investment in our futures. It's reassuring that the government is increasing support for public secondary schooling. But we are continuing to see a lack of focus on creating a climate that provides for the youth. We need real action on climate alongside the investment in education to allow young people to have an equal and fair chance in building a positive future for ourselves." – Emma, Melbourne
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YACVic’s full analysis will be available by Friday 23 May 2025.
Media contact: Casey Dean (she/her), YACVic Media & Communications Coordinator – CDean@YACVic.org.au or 0498 730 553
Talent
YACVic CEO Mary Nega (she/her) and Policy & Advocacy Manager Lauren Frost (she/her) available for interviews and analysis.
Young talent also available to discuss impact of budget on their life – request a specific topic.
About YACVic
Youth Affairs Council Victoria (YACVic) is the peak body and leading advocate for young people aged 12-25 and youth workers in Victoria. Our vision is that young people are active, visible and valued in their communities.