This paper has two aims. It considers what social inclusion could offer young people and the youth sector in Australia, and it reflects on how social inclusion has shaped the youth policy environment in Australia. It is argued that in order to consider these issues, it is necessary to understand social inclusion's history. Using a methodology of policy analysis based on Bacchi's (2009) approach, this paper explores the policy context of social inclusion in Europe and the United Kingdom, offering these as a comparison with Australia. It is argued that social inclusion is a policy chimera, and that it plays all-too-familiar roles in policies that target young people.