Skyrocketing Youth Detention Costs Shows Criminal Justice Reform Needed

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“Although the number of youth offenders in detention has remained largely unchanged, Australia continues to spend more on youth detention. Worryingly, violent youth offending is being left unchecked and is rising,” said Mia Schlicht, Research Fellow at the Institute of Public Affairs.

Today, new Productivity Commission Report on Government Services 2025 data reveals the number of youth offenders in detention in Australia has remained unchanged over the past decade, yet the cost to detain them has increased by a whopping 84 per cent when adjusted for inflation:

  • During the 2023-24 financial year the average daily number of youth offenders in detention across Australia was 827.
  • The cost of youth detention to Australian taxpayers passed $1 billion in FY 2023-24, almost double it was in 2014-15 at $544 million.
  • It costs taxpayers over $1.212 million to incarcerate just one youth offender for one year.
  • The utilisation rate of youth detention centres in Queensland is 99.6 per cent of designed capacity. Rates in New South Wales, Tasmania, and the Northern Territory are now above 50 per cent.

“Spending on youth detention has increased for the ninth consecutive year, yet youth crime, particularly violent crime, is not being addressed. This is why wholesale criminal justice reform that seeks to divert young Australians from a lifetime of criminal behaviour is vital,” said Ms Schlicht.

The Productivity Commission’s data follows that of the Australia Bureau of Statistics, which outlines how youth offenders are becoming increasingly violent.

“Over the past decade, the number of youth offenders prosecuted for violent crimes has increased by 28 per cent. Despite this, the number of youth offenders in detention has not changed. The numbers do not add up,” said Ms Schlicht.

“Governments are failing on two fronts. First, they are not effectively intercepting anti-social youth behaviour, and second, once offenders become violent, they are not being removed from the environment that is fostering this behaviour.”

“As soon as a young offender are identified as anti-social and unwilling to comply with the law, the criminal justice system needs to implement swift and certain punishment before these offenders engage in further, more violent, criminal behaviour,” said Ms Schlicht.

IPA research has found that alternative punishments for low-level, non-violent youth criminals, such as the rehabilitation ranch Rancho Cielo in the United States, have successfully decreased reoffending rates.

“Rancho Cielo operates at about a quarter of the cost of its neighbouring youth detention centre and has reduced the reoffending rates from 40 per cent to 15 per cent, making the community safer,” said Ms Schlicht.

“Non-violent youth offenders should be diverted from detention, which in many cases lead to escalating recidivism, and instead be given the skills to gain employment and financial independence at rehabilitation facilities. Not only will this set them up for a better future, but will save money for taxpayers in the long run.”

To download the IPA’s previous research click here.

Mia Schlicht

Mia Schlicht was a Research Fellow at the Institute of Public Affairs
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