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.
