Australia youth incarceration costs reach $1.1 billion annually

Australian taxpayers spend over $1.1 billion annually on youth incarceration and more than $7.3 billion on adult incarceration. The cost of youth detention has more than doubled over the last decade, now averaging approximately $1.3 million per child per year.

Critics argue that high spending on imprisonment is ineffective, as it often increases the likelihood of future offending and exacerbates social disadvantages in health, housing, and employment. While some US states have reduced prison capacity by closing facilities, Australian policymakers often prioritize “tough on crime” stances over economic arguments for reform. The newly formed Economists for Justice Reform coalition aims to advocate for the economic case against using prisons as the default response to crime and disadvantage.