The 2015 Annual Youth Survey of almost 19,000 Australians aged 15-19 found 27 per cent of participants felt alcohol and drugs were the top national concern.
This was followed by high levels of inequity and discrimination at 25 per cent. The economy, considered the foremost concern for young people in 2014, fell to third.
"This concern may reflect the pervasiveness of the drug ice through many communities in Australia, as well as its prevalence in media and political discussions," Mission Australia chief executive Catherine Yeomans said.
More than half of participants perceived barriers to achieving work and study goals in Australia, with issues such as academic inability, financial stress and physical or mental health driving this view.
Young women were far more likely than young men to identify such barriers, and Ms Yeomans said she was disappointed to find females were more likely to see academic inability as an issue.
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She said it appeared young Australian women lacked confidence in their abilities, despite equal or superior academic performance compared to their male peers.
"Despite some progress, women are still woefully under-represented in many aspects of employment, management and leadership roles across all sectors," Ms Yeomans said.
Coping with stress was ranked the largest personal concern for young Australians, with around 40 per cent of respondents "concerned" or "extremely concerned" about their stress levels.
Study problems and body image were also important personal concerns, while one in five respondents said they were concerned about depression.
"While we know there are good initiatives out there to help young people with stress, our findings show more needs to be done," Ms Yeomans said.
Optimism for the future fell slightly with 60 per cent of respondents saying they were "positive" or "very positive" about it.
2015 MISSION AUSTRALIA ANNUAL YOUTH SURVEY: THE RESULTS
ISSUES YOUNG AUSTRALIANS CONSIDER MOST IMPORTANT:
* Alcohol and drugs: 27 per cent
* Equity and discrimination: 25 per cent
* The economy and financial matters: 18.9 per cent
THE LARGEST PERCEIVED BARRIER TO STUDY AND WORK SUCCESS:
* Academic ability: 18.2 per cent
* Financial difficulty: 16.9 per cent
* Lack of jobs: 12.2 per cent
THE LARGEST PERSONAL CONCERN FOR YOUNG AUSTRALIANS:
* Coping with stress: 38.4 per cent
* School or study problems: 33.6 per cent
* Body image: 26.5 per cent
