As the government faces calls to increase welfare payments, experts argue it could be a crucial step in addressing Australia’s growing youth homelessness problem.

A recent report found that welfare payments such as Jobseeker and Commonwealth Rent Assistance (CRA) are seriously inadequate.

Kate Colvin, the CEO of Homelessness Australia, told Deborah Knight that those eligible for youth allowance in Sydney can be “paying 98% of their income on rent because the cost of rents in Sydney is just so extreme.”

With 40,000 children and young people in need of homeless services in Australia, the report calls for a 40% increase in Jobseeker payments.

The debate continues as the government faces tough decisions in the upcoming budget.