The issue of youth homelessness in Australia is examined in the context of relevant social and educational policies. The exploration is based on 8 years of research into the situation of homeless youth in Australia involving several studies, including a study of school students in 9 communities and field visits to 100 schools. In 1994, researchers found 11,000 homeless students in Australian schools. Part 1 describes the dimensions of the problem in Australia and concludes that youth homelessness is getting worse in Australia, although perhaps not at the rate at which it increased in the early 1990s. Part 2 explores early intervention and prevention and calls for a national approach to set policies that address the problems of homeless youth and their families. (Contains 39 tables, 3 figures, and 138 references.) (SLD)