Orygen welcomes the economic reform that headlines the Australian Government’s 2026-27 federal budget, which is a positive step towards addressing the intergenerational inequality that young people tell us is impacting their wellbeing and hope for the future.
Tax reform is a mental health strategy, because all the research tells us that economic factors are inextricably linked to young people’s health and wellbeing, including their ability to access mental health care when they need it.
Australians know it. YouGov polling recently commissioned by Orygen found that most Australians (55%) rank ‘cost of living’ among the top three drivers of deteriorating youth mental health, making it the most frequently cited factor overall. You can see the full data here.
We’ve been proud to work alongside sector partners such as Think Forward, Prevention United and Foundations for Tomorrow, who have driven important conversations about intergenerational fairness, including at a panel event focusing on the economic system and youth mental health that we co-hosted in April.
“In the midst of a youth mental health crisis, we need long-term, big picture thinking – and this budget represents a decisive and overdue step in that direction,” Orygen’s Executive Director, Professor Patrick McGorry said.
“While it’s vital that we invest in mental health services – across all levels of the healthcare system – we cannot just tackle the symptoms, we need to get to the root cause of young people’s distress.
“In doing this, we can’t ignore how a system that has overwhelmingly privileged older, wealthier people is impacting young people’s ability to realise their full potential and make plans for their futures. Without financial stability, mental health and recovery are that much harder.”
Orygen was also pleased to see the government’s introduction of a Youth Housing Supplement – a $60 million investment that will unlock thousands of homes for young people trapped in homelessness.
This is a significant step forward for intergenerational housing equity in Australia and comes after strong advocacy from the Home Time campaign, driven by our partners Melbourne City Mission.
Orygen also welcomes the investment in culturally safe crisis support, with additional funding for 13YARN (which provides support to Aboriginal and Torres Strait Islander people) to respond to growing demand, expand community and digital engagement, and introduce a text-based crisis support service.
While structural reforms to tax and housing will go some way to tackling the underlying causes of inequality and distress for young people, the budget largely maintains existing investment in mental health care, rather than expanding or reforming this overstretched system in the face of rising demand for mental health services.
In addressing economic drivers, we must not forget that investment in world-class, frontline care remains critical, and we look forward to continuing to work with the Federal Government to realise its election commitments to delivering 20 new Youth Specialist Care Centres, establishing the National Institute of Youth Mental Health and expanding the headspace network.
As always, we will continue to advocate for youth and lived experience voices to be part of the conversation, and for youth mental health to be prioritised as key to Australia’s future prosperity.