Australia’s Very Low Life Satisfaction Doubles to 9.7%, Leaving 2.2 Million in Wellbeing Poverty
Updated
Updated · The Guardian · Jul 19
Australia’s Very Low Life Satisfaction Doubles to 9.7%, Leaving 2.2 Million in Wellbeing Poverty
1 articles · Updated · The Guardian · Jul 19
Summary
About 2.2 million Australians aged 15 and over fell below the wellbeing poverty line in 2025, with 9.7% rating life satisfaction at four or less out of 10.
That share has doubled from 4.8% in 2014 after a jump during 2020 Covid lockdowns that persisted amid soaring living costs, weak consumer confidence and flat real household disposable income since mid-2020.
ABS data show people in wellbeing poverty are far more alienated: only 15% feel they have a say in community decisions, versus 32% nationally and 46% among those with life satisfaction of nine or above.
Support for multiculturalism also drops sharply in the lowest-satisfaction group, with just over 60% calling cultural diversity good for society, compared with 80% across Australians and nearly 90% among the most satisfied.
Economists and social-cohesion researchers tied the slide to rising prices for essentials, housing stress and unmet expectations, even as Scanlon’s national social cohesion index held at 78 for a third straight year.
Beyond empty wallets, how is the economic crisis impacting the mental health and social fabric of Australia?
As millions fall into 'wellbeing poverty', is Australia's identity as a multicultural success story at risk?
With a $47 billion housing plan underway, is Australia's home ownership dream further away than ever?
The Doubling of Wellbeing Poverty in Australia: Causes, Consequences, and Solutions (2025-2026)
Overview
Australia is facing a serious rise in wellbeing poverty, with life satisfaction steadily declining since the 2020 COVID lockdowns and very low satisfaction rates reportedly doubling. This issue affects people from all walks of life, not just those with financial struggles. The report highlights that the strength of community bonds is a key factor in addressing this crisis. Research shows that living in a highly cohesive neighbourhood can double an individual's happiness, regardless of their economic situation. Building strong, connected communities acts as a powerful buffer, helping Australians better cope with the challenges that drive wellbeing poverty.