Nearly 2.2 million Australians aged 15 and older are living below the wellbeing poverty line, with the share of people reporting very low life satisfaction doubling over the past decade, according to Guardian Australia's analysis of the Australian Bureau of Statistics (ABS) general social survey.
In 2025, 9.7%—about one in 10 Australians—rated their general satisfaction with life at four or below out of 10, compared with 4.8% in 2014. The initial surge in dissatisfaction came during the 2020 COVID lockdowns and has persisted amid soaring cost of living.
Wellbeing Poverty and Economic Pressures
The ABS data echoes other surveys, such as Westpac's consumer confidence index, which has languished at around 50-year lows since failing to recover from the pandemic. National living standards, measured by household disposable income per household adjusted for inflation, are at the same level as in mid-2020. Analysts expect the national economy to drop back into a per capita recession amid stagflation—low growth and high inflation.
Shane Oliver, AMP's chief economist, said lower-income households had been hit particularly hard by the huge rise in prices for essentials like electricity, insurance, and health care. "Consumer confidence seems to be chronically stuck around recessionary levels," Oliver said. He also pointed to extensive literature on the economics of happiness, noting that life satisfaction does not track higher with material wealth past a certain middle-income threshold. "I suspect housing is the single biggest problem. If we managed that issue better, that would go a long way to addressing this issue," he added.
Social Cohesion and Trust
Amid an explosion of support for far-right and populist politics, those reporting very low life satisfaction are more likely to feel alienated and disempowered. Only 15% of people experiencing wellbeing poverty feel they have a say on important matters affecting their communities, against the average of 32% across all Australians. The proportion rises to 46% among those with high life satisfaction.
Just over 60% of people with very low life satisfaction agree that a society composed of different cultures is a good thing, far below the average of 80% and the 90% among those with highest satisfaction. Anthea Hancocks, CEO of the Scanlon Foundation Research Institute, said economic circumstances have a big impact on social cohesion. "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," she said.
Despite these undercurrents, Hancocks noted that social cohesion nationally has proved resilient. The Scanlon social cohesion index has stayed steady at 78 over the past three years, though below the 2021 peak of 92. "We know that regardless of your economic circumstances, if you live in a highly cohesive neighbourhood, your level of happiness doubles," she said. "Building trust is an essential component."
