Landmark report warns wellbeing of Australian children at a crossroads

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Fiona Alston

Nov 25, 2025

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Australian children and young people are increasingly concerned about their futures, with a landmark new report revealing troubling trends of rising developmental delays and escalating mental health distress.

The inaugural State of Australia’s Children Report offers the most comprehensive snapshot to date of the nation’s children, including teens reporting declining life satisfaction as they get older, and being burdened by fears for their financial future and housing.

Less than a third of teens said they feel very excited and hopeful about the next five years.

The report developed by UNICEF Australia in partnership with the Australian Research Alliance for Children and Youth (ARACY) and supported by Minderoo Foundation is the first of its kind tracking children’s wellbeing across multiple datasets and time points. It shows that not all Australian families have access to the supports they need to give children a good start and help them reach their potential through the teen years.

The State of Australia’s Children Report lays bare the situation confronting our youngest citizens with only 53 per cent of kids arriving at school developmentally on track across all five domains measured by the Australian Early Development Census (AEDC). That figure drops sharply to just 34 per cent for Aboriginal and Torres Strait Islander children.

This marks the highest level of developmental vulnerability recorded since the AEDC began in 2009.

Future-related anxieties are most acute among Australia’s 16 and 17-year-olds, with nearly half (49 per cent) identifying financial security and housing as the greatest concerns facing their generation. Alarmingly, these concerns are not limited to older teens with 43 per cent of people aged 12 to 17 sharing the same fears.

The report also reveals a clear decline in life satisfaction as children age, with 16 to 17-year-olds reporting lower wellbeing compared to their 12- to 13-year-old peers.

The wellbeing of the nation’s children is at a critical tipping point, with children in the most at-risk groups falling further behind.

UNICEF Australia’s Chief Advocate for Children Nicole Breeze said, “This report highlights some deeply concerning trends affecting the wellbeing of Australian children from the early years right through adolescence. It’s a clear call to action. In a country like ours, with the resources, expertise and systems we have, Australia should be the best place in the world for children to grow up.

“The data shows rising mental health concerns among young people, and the fact that suicide remains the leading cause of death for young Australians is a stark reminder of what’s at stake. We need stronger, more coordinated investment in prevention and early intervention so we can shift the trajectory and ensure every child has the chance to thrive,” Ms Breeze said.

In a series of creative, age-appropriate workshops, children as young as three shared what wellbeing means to them through drawing, storytelling, and model-making. Their voices, captured in direct quotes throughout the report, highlight a desire for a healthy planet, safe homes, support, and peace.

A separate Minderoo Foundation report recently found that failing to identify health and development issues in young Australians had surged almost 50 per cent to $22.3 billion annually.

Nicola Forrest AO said a lack of investment in the early years was fuelling the problems experienced by Australians later in life. “The science is unequivocal: the first five years shape a lifetime. These years are a fleeting window, yet too many children start school without the foundations they need,” Ms Forrest said.

Late intervention refers to the spending on statutory, acute, and essential services and benefits provided when children or young people are in crisis or facing serious issues. These services largely funded by government are not only expensive but often represent missed opportunities to change life trajectories through earlier, more effective support.

“Developmental vulnerability is rising, and only half of our children arrive at school ready to learn,” Ms Forrest said. “These outcomes are not sudden; they are the cumulative effect of missed opportunities in the early years, and they echo into adolescence and young adulthood where we see growing mental health concerns, disengagement from education and community and housing insecurity.

“With only half of children on track developmentally, and serious gaps in access and quality, we must act now and turn good intentions into lasting change.

“Let’s establish a National Early Years Commission, build smarter budgets that prioritise early intervention, and launch a Children’s Data Framework that holds every level of government accountable. Our kids can’t wait and neither should we.”

Drawing on over 100 data sets and input from more than 2,000 children nationwide, the Report offers a powerful snapshot of the challenges impacting young Australians. Among 12–17 year-olds, 39 per cent identified mental health as their second biggest concern after housing and financial stress, followed by digital change and online safety (32 per cent).

ARACY CEO Prue Warrilow said, “This report brings together, for the first time in one place, how children and young people are faring across every part of life that matters being loved and safe, having material basics, being healthy, learning, participating, and having a positive sense of identity and culture.

“The Nest -Australia’s first evidence-based framework for the wellbeing of children and young people is a gift for policymakers and the wider community because it centres what children need to thrive. But the picture is still incomplete. We need comprehensive linked data, across geographies and by age, so no child is invisible when decisions are made,” she said.

Some of the other key takeaways included:

Australian teenagers are so concerned about future financial stress that 41 per cent said making housing more affordable would be their top priority if they led the country.
Teens want adults to understand their worries about the future (34 per cent) and job security (25 per cent).
Despite these concerns, many still show empathy, seek comfort, and hold hope for what’s ahead. • Over a third said they’d boost financial support for struggling families and remote communities if they were in charge.
Family (79 per cent) and friends (64 per cent) are key sources of happiness, support, and celebration.
Nearly one in three teens feel excited and hopeful about the next five years, with 28 per cent optimistic about progress on climate change.

State of Australia’s Children Report Executive Summary can be located here.

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