The National Commission of Audit's 86 recommendations include a proposal that would force some unemployed people to move to areas with more jobs or lose their benefit.

The commission also recommends the deregulation of university fees and that graduates begin repaying education loans when they earn the minimum wage.

The proposed change to the Newstart allowance would see young, single people aged between 22 and 30 without dependants or special exemptions required to relocate or lose access to the benefit after a period of 12 months.

Treasurer Joe Hockey says the commission's report is "not the budget" but has not ruled out adopting any of the proposals.

"The fact is, the best sustenance for a family is to have a job – for someone in the household to have a job," he said on Thursday.

The ABC spoke to two young people about the proposed changes and their current struggle to find work:

We 'already make sacrifices': student

Erin Deacon, 22, who lives in Blacktown in Sydney's west and studies business and public relations at a private college, is desperate to find a job.

She currently receives youth allowance and has been unable to find ongoing part-time work while completing her studies.

"There was a job going in [Blacktown's] main shopping centre," she said.

"I heard from a friend of mine that about 50 people had applied for that one job. The competition for employment is quite fierce."

Ms Deacon was told she would be transferred onto Newstart if she was still unable to find work after graduating in August.

Erin Deacon says the commission's proposal could see metropolitan university graduates shipped out to regional towns. ( Supplied )

She says she is concerned the commission's proposal could see university graduates relocated to an area where, despite more job opportunities, prospects are poor.

"In the field of business and public relations, it's hard to find a paying full-time job," she told ABC News Online.

"There isn't a lot of work in public relations in this area. But I do live close to the city – I'd be happy to go [there] to work.

"If they relocated me to ... a country town, where my best bet would be to get a job in a supermarket, I'd be frustrated that I'd spent all this time studying only to be working in a job that anyone could do.

"A job is a job. I'm happy for anything. But once I've finished my degree I'd like to have a job in a relevant field."

Ms Deacon says the commission's recommendations to increase students' contributions towards higher education costs and to have the repayment threshold reduced to the minimum wage could see young people opting out of university.

"When you think about it, students are already making a lot of opportunity-cost sacrifices," she said.

"For example, before I started my degree I was working in various administration jobs full-time for three years. When I decided to study full-time, I took a redundancy.

"I'm still sacrificing the money I would be earning on a regular administrative job to study. I think students already make quite the sacrifice."

Unemployed have no money to move

Sophie Brady, 24, from Newcastle decided to transfer from arts to business two years into her degree to increase her employment prospects.

"I thought, changing to business, I'd have a few more skills and be more hireable," she told ABC News Online.

Ms Brady, who is currently unemployed and on youth allowance, says people unemployed for over 12 months would not be able to cover the costs of moving.

"It doesn't make sense. If you've been unemployed for so long, you definitely are not going to have savings," she said.

"I know in my situation I struggle to live fortnightly. How are you meant to relocate and find instant employment?"

She says she lost her last job, at a cafe in Newcastle, after spending a few days with her family over Christmas.

"Since then I've been really unlucky and unable to find something," she said.

"I am looking for employment, I'm on Seek everyday. I'm hoping when I finish my degree I can find something.

"I wouldn't be happy to be relocated. I've chosen to live here for a reason.

"My boyfriend is here, my family is here. I wouldn't really want to move away to somewhere where I didn't know anyone."

She says while Sydney may offer better job prospects than Newcastle, the cost of living is much higher.

"I can barely afford to live at the moment and then when you do finish university you have to find employment too," she said.