Young Australians are more educated than previous generations, but they are struggling to turn higher qualifications into paid work.

And they are paying considerably more for an education that is not properly equipping them with the skills needed in a rapidly changing workforce, according to a new report that paints a grim picture of intergenerational inequity.

In the middle of an election campaign where key youth issues have struggled for airtime, the report by advocacy and research group the Foundation for Young Australians suggests this generation may be the first to contribute more to government coffers than they receive, due to the ageing population, higher health costs and a shrinking tax base.

"Sometimes we tend to blame the individual young person - sometimes they blame themselves," said the foundation's Jan Owen.