Published on Mar 21, 2017
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How do you feel about giving every 25 year old in Australia a grant?
‘Youth grants’ have been suggested by Tim Ayres, NSW secretary of the Australian Manufacturing Workers Union as a solution to young Australian’s economic challenges.
The proposal initially came from economist Thomas Pikkety. The reasoning behind Picketty’s proposal is that a grant would address the rising inequalities that young Australians face as a result of recent economic and job upheavals.
Deloitte’s latest Millennial report shows that young people are more and more concerned about their future. Only 8% of Millennials felt they will be better off than their parents.
Millennials face a raft of challenges, many of which previous generations didn’t:
- High property prices: many millennials are getting together with friends in order to purchase housing, or continuing to rent in a climate where rental prices keep rising.
- Uncertain Job Market: job fields that are disappearing as a result of automation.
- Industry Changes: some careers just aren’t viable anymore. Once secure industries like geology and mining now have an uncertain future.
- Millennials are also accruing sizable debts in order to educate themselves as TAFE and University fees continue to rise.
It isn’t all bad news.
Automation is creating a boom in the field of robotics, and flexible working arrangements are becoming normal in many industries and social media allows businesses to network and reach a large audience.
However, Ayre’s idea to issue a grant to Australian every citizen at 25 years old would provide them with money to pay their education, put toward a house loan or put into a business.
The funding would come from a universal inheritance tax which would be applied to those Australian’s with assets of $10 million and over.
If the grant went ahead it would join other grants for small businesses and technology start-ups released by Federal and State agencies recently.
Deloitte’s latest Millennial report can be found here 2017 Millennial Survey.
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