Australia’s Wellbeing Poverty Hits Record High as Life-Satisfaction Scores Halve

In 2025, 9.7 % of Australians aged 15 and older—about one in ten—rated their overall life satisfaction at four or below on a ten-point scale, according to the Australian Bureau of Statistics (ABS) General Social Survey. This marks a doubling of the share that reported “very low” satisfaction in 2014 (4.8 %). The ABS analysis identifies nearly 2.2 million people living below the “wellbeing poverty” line, a threshold that combines low disposable income with poor self-reported wellbeing. The surge began during the 2020 COVID-19 lockdowns and has persisted amid soaring living costs, stagnant household disposable-income levels (unchanged since mid-2020), and a backdrop of low growth and high inflation.

Australia’s ‘wellbeing poverty’ line reaches new highsThe GuardianMalcolm Turnbull to deliver 2026 McCosker OrationThe Guardian

The initial spike in dissatisfaction coincided with nationwide lockdowns in 2020, which disrupted employment and heightened financial strain. Since then, consumer confidence has lingered at historically low levels, reflected in Westpac’s confidence index hovering near 50-year lows. Wage growth for top earners has outpaced that of low-income workers by more than two-to-one over the past decade, widening economic disparity. Analysts project a per-capita recession as stagflation pressures persist.

Australia’s ‘wellbeing poverty’ line reaches new highs

• Wellbeing poverty: ? 2.2 million Australians (15 +).

Australia’s ‘wellbeing poverty’ line reaches new highs

• Very low life satisfaction: 9.7 % in 2025 vs 4.8 % in 2014.

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• Perceived community voice: 15 % of those in wellbeing poverty feel they can influence community matters, compared with 32 % nationally; the figure rises to 46 % among respondents rating satisfaction 9 or 10.

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• Multicultural support: Just over 60 % of the lowest-satisfaction group view cultural diversity as beneficial, versus 80 % overall and nearly 90 % among the highest-satisfaction cohort.

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• Social cohesion index (Scanlon Foundation): 78 for three consecutive years, down from a peak of 92 in 2021.

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Low satisfaction correlates with reduced trust in institutions, lower civic participation, and heightened receptivity to far-right and populist narratives. The ABS data show that individuals scoring four or below are more likely to feel alienated and to express weaker support for multiculturalism. Such attitudes can erode social cohesion, complicate policy responses, and amplify political polarization.

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AMP chief economist Shane Oliver highlighted that lower-income households bear the brunt of price spikes for essentials such as electricity, insurance and healthcare, and noted that “consumer confidence seems to be chronically stuck around recessionary levels.” He linked the decline in satisfaction to “thwarted hopes and unmet expectations,” particularly around home-ownership prospects.

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Anthea Hancocks, chief executive of the Scanlon Foundation Research Institute, emphasized that economic circumstances heavily influence self-worth and trust, noting that “building that trust is an essential component” of improving wellbeing. She pointed to the Scanlon social-cohesion index’s stability as evidence that community-level initiatives can mitigate broader dissatisfaction.

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The data intersect with a surge in support for far-right figures such as One Nation leader Pauline Hanson, whose calls for a “monocultural” society contrast sharply with the 60 % of low-satisfaction respondents who still view cultural diversity positively. Critics argue that politicising wellbeing poverty risks oversimplifying structural economic issues and diverting attention from needed reforms in housing affordability and wage equity.

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• “Consumer confidence seems to be chronically stuck around recessionary levels,” — Shane Oliver, AMP chief economist

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• “I suspect housing is the single biggest problem. If we managed that issue better, that would go a long way to addressing this issue,” — Shane Oliver, AMP chief economist

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• “We know that people’s economic circumstances have a really big impact on their sense of social cohesion because it impacts their sense of self-worth,” — Anthea Hancocks, Scanlon Foundation chief executive

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• “If you feel like nobody cares and you don’t really matter, then that would make you feel like you can’t trust other people or trust institutions. And that tends to lead to not participating in their community or talking to people, so it has a big effect,” — Anthea Hancocks, Scanlon Foundation chief executive

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• “We know that regardless of your economic circumstances, whether you are struggling or you say you are prosperous, if you live in a highly cohesive neighbourhood, then your level of happiness doubles,” — Anthea Hancocks, Scanlon Foundation chief executive

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All cited sources present consistent figures for wellbeing poverty and life-satisfaction rates; no contradictory statistics were identified. However, the ABS data lack regional breakdowns and detailed demographic analyses, leaving gaps in understanding how the crisis varies across states, age groups, or Indigenous populations.

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