Young Australians deserve more than a rigged future
Young people are struggling, but not equally. While some inherit safety nets, others face shrinking futures, leading to a quieter crisis and greater division. Carl Rhodes reports.
AUSTRALIA’S YOUTH are making it tough. The cost of living crisis, housing unaffordability, lack of financial independence and poor job security are hitting hard.
Today’s young people face a future where they will be. worse They are economically better off than their parents and even their grandparents.
economists They are sounding the alarm about generational inequality. Federal Government marked We see this as a policy priority. The private sector is increasingly recognizing this threatening to jobs and markets.
But within this broader generational divide lies another, quieter crisis: inequality among young people. Not all young people are equally affected. Those from less affluent families are bearing the brunt of the crisis, with worse outcomes, fewer safety nets, and more limited access to opportunities.
The intergenerational transfer of wealth that will reshape the Australian economy in the coming decades threatens to deepen these divides. The risk is an even more unfair system in the Australia of tomorrow, where your future may depend less on what you do and more on who your parents are.
We need to ask: Do we really want an Australia where economic prosperity is no longer tied to need, merit or effort, but to inheritance?
Many young Australians are struggling to survive
2025 UN Youth Australia Youth Envoy ReportIt was launched earlier this month, based on a listening tour of more than 5,000 people aged 12 to 25. It paints a stark picture of the economic challenges facing young Australians.
The report finds that the cost of living crisis has become a defining feature of young people’s lives since the COVID-19 pandemic. For many, being young in Australia is no longer about ambition and progress; It’s about survival.
Monash Universitylatest Youth Barometer Survey, It again reflects this gloomy outlook that emerged this month. The report, which surveyed more than 500 Australians aged 18 to 24, found a staggering 85 per cent had experienced financial hardship in the past year. Almost 80 percent believed they would be worse off financially than their parents when they grew up.
Things are getting so bad research carried out by Deloitte Earlier this year it was revealed that more than four in ten Australians aged 18 to 24 felt they were missing out on their youth. They say economic and political pressures may prevent them from living happy and healthy lives in the future.
These numbers are not abstract. These represent the real lives of young people who have to choose between paying rent and buying food, or who have to postpone their dreams of education, travel, or family because survival takes priority.
Some young Australians are more unequal than others
The realities of generational inequalities are brutal, but it gets worse when you realize that inequality is not evenly distributed even among younger generations. While wealthy young Australians are getting richer, those born at the bottom of the socio-economic ladder face conditions that prevent them from keeping up.
Meanwhile, Australia is on the brink of its largest ever intergenerational wealth transfer. 3.5 trillion dollars It is expected to move from Baby Boomers to younger generations over the next two decades.
A wealth of residential properties, unspent retirement balances and business investments will be transferred from hand to hand, creating a new class of wealthy people who enjoy wealth not earned by their own labor.
This shift will reshape the country’s economic landscape, but the bigger risk is how it will reshape the social landscape. If you are born into a family that owns property and other assets, then all is well and good; Your financial future will likely be secure.
If these weren’t the cards you were dealt, your future would look very different. No matter how hard you work, whether in education, career development or entrepreneurship, catching the legacy jackpot winners will be nearly impossible.
What we currently define as intergenerational inequality will develop into full-blown society-wide inequality and an economically polarized society with few mobility opportunities between the haves and have-nots.
Australia is at a crossroads
We stand at a crossroads. We can either allow wealth and prosperity to become the exclusive domain of inherited privilege, or we can choose a more equitable path that ensures that every young person, regardless of background, has a real chance at a safe and fulfilling life.
This isn’t just about economics. It’s about what kind of society we want to be. If we believe in fairness, reward for effort and equality of opportunity, we must face the uncomfortable truth that Australia is drifting towards a future where heritage matters more than ambition.
Solutions are on the table. bold tax reform can level the playing field. reformist housing policies It should prioritize affordability and penalize speculation. stronger welfare The system will guarantee fair access to basic services. national inequality goals can motivate action and hold the government accountable. Providing equality Everyone will be given the opportunity to succeed in education. Embedding in long-term equity policy making It will ensure justice in Australia’s future.
The question is whether Australia has the political will to pursue a fairer future, or whether we will advance Australia for the minority rather than the majority.
Carl Rhodes is Professor of Business and Society at the University of Technology Sydney. Wrote several books On the relationship between liberal democracy and contemporary capitalism. You can follow him on X/Twitter @ProfCarlRhodes.
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