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NSW BUDGET 2026-27: YOUNG PEOPLE EXPERIENCING HOMELESSNESS STILL STUCK IN THE CRISIS CIRCUIT

Yfoundations

Key Facts:

• Yfoundations has welcomed some elements of the NSW 2026–27 Budget, including $17.2 million for specialist workers supporting children experiencing family violence, 4.75 per cent indexation, and $39 million for temporary accommodation, but warns the investment falls short of what is needed to address youth homelessness.
• The $17.2 million for specialist workers will only support accompanied children fleeing violence, leaving unaccompanied young people — for whom domestic and family violence is a leading driver of homelessness — without a dedicated response.
• Temporary accommodation funding does not create the exit pathways young people need; in 2024–25, 94 per cent of young people who entered crisis accommodation finished their support period still in crisis.
• With no new investment in specialist homelessness services across the state, 50 per cent of unaccompanied children and young people seeking crisis accommodation will continue to be turned away.
• Yfoundations remains committed to working with the Government on the NSW Child and Youth Homelessness Action Plan and will continue to advocate for a 50 per cent funding uplift for the specialist homelessness sector, which has received no meaningful increase since 2012.

Yfoundations welcomes elements of today's NSW Budget but says the investment falls short of what is needed to break the cycle of youth homelessness in New South Wales and falls short of the Government’s own commitment to better respond to child and youth homelessness in our state through the development and implementation of a Child and Youth Homelessness Action Plan.

In the lead up to Budget 26-27, Yfoundations has campaigned for a 50 per cent uplift of funding for the specialist homelessness sector, a sector that is stretched beyond capacity with no meaningful increase in funding since 2012.

The NSW Government has announced $17.2 million for specialist workers supporting children and young people experiencing family violence — a welcome investment in a critical area. However, these workers will support accompanied children — those fleeing violence with a parent or carer — and do not extend to unaccompanied young people experiencing homelessness as a result of domestic and family violence. Domestic and family violence is one of the leading drivers of youth homelessness, and unaccompanied young people escaping violence remain without a dedicated response in today's Budget.

The $184.1 million DFV investment is significant and will strengthen crisis responses for families. But not all of the children and young people who make up nearly half of all specialist homelessness service clients in NSW — 47 per cent in 2024–25 — have received appropriate investment.

Yfoundations acknowledges the 4.75 per cent indexation rate and the $39 million for temporary accommodation. In matching increases to award rates, the indexation rate will provide some relief to services absorbing cost pressures across wages, insurance, and utilities. But temporary accommodation addresses the immediate crisis — it does not create the exit pathways young people need. In 2024–25, 94 per cent of young people who entered crisis accommodation finished their support period still in crisis, either remaining in the same service or moving between services. Temporary accommodation investment will not change that figure without parallel investment in medium-term and transitional housing.

With acknowledgement of the $4.5 million to support the operations of three North Coast homelessness service centers, Yfoundations highlights that with no new investment in specialist homelessness services across the state, 50% of unaccompanied children and young people seeking crisis accommodation will continue to be turned away. Without investment in support, any investment in capital builds does not translate to youth housing models that provide the exit points out of crisis.

Yfoundations remain committed to working with the Government on the development, implementation and monitoring of the NSW Child and Youth Homelessness Action Plan and will continue to advocate for the investment required to achieve the best results possible for unaccompanied children and young people at risk of and experiencing homelessness.

END

Quotes:

‘It is high time that existing and new investments into housing and homelessness services are informed by the needs of those that require them. Like any other child or young person, young people at risk of and experiencing homelessness need support to grow and realise their potential.’ John Macmillan, CEO of Yfoundations

Quotes attributable to members of our Youth Homelessness Representative Council, comprised of 18-24 year olds with lived experience of homelessness.

‘There is not enough funding for youth homelessness services. A young person has to jump from one end of Sydney to another just to receive basic support services. There is no one stop shop, there is no awareness on what a young person has to go through, re live, and reiterate just to qualify or be seen by a service’. – Jenny, YHRC Member

‘Being left out on the budget isn’t being forgotten, it is a choice and that impacts the people with the least say. It seems like the situation isn’t important enough to them when it’s not reflected in the resources made available’. – Emery, YHRC Member

‘It’s crushing to see the unimportance of my reality. The support from youth services has gotten me to where I am today.’ – Aries, YHRC Member

‘We often talk about getting people into housing, but we also need to talk about what helps people stay there. For many young people, particularly those who have experienced homelessness, trauma, family breakdown, or time in care, support services are not an optional extra – they are a key part of long-term housing stability’. – Shirley, YHRC Member

‘Every day I work with young people being turned away and told that there’s no vacancies leaving vulnerable young people to return to unsafe environments and live in survival rather than thriving. As a young person who experienced homelessness, I know firsthand the impact that getting support when you need it most can have on a person and it’s heartbreaking to know that more young people are going to go without that support with no additional funding for homelessness services in this year’s budget.’ – Tash, YHRC Member and Youth Worker

About us:

For over 45 years, Yfoundations has served as the NSW peak body providing a voice for children and young people at risk of and experiencing homelessness, as well as the services that provide direct support to them.

Contact details:

John Macmillan, Yfoundations CEO – 0466 458 333