Nearly 2.2 million Australians aged 15 and older are living below the wellbeing poverty line, with the proportion 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% of Australians—approximately one in ten—rated their overall life satisfaction at four or below out of ten, compared to 4.8% in 2014.
Persistent dissatisfaction since COVID-19 lockdowns
The initial surge in dissatisfaction emerged during the 2020 COVID-19 lockdowns and has continued amid soaring living costs. This trend is echoed in other indicators, such as Westpac's consumer confidence index, which has remained near 50-year lows since the pandemic. The ABS data reveals that those with low life satisfaction are more likely to feel alienated and less supportive of multiculturalism.
Alienation and community disempowerment
Only 15% of people experiencing wellbeing poverty feel they have a say on important community matters, compared to the national average of 32%. Among those reporting life satisfaction of nine or above, that figure rises to 46%. Regarding multiculturalism, just over 60% of those in the lowest satisfaction group agree that a society composed of different cultures is beneficial, far below the 80% average among all Australians and nearly 90% among the most satisfied.
Stagnation and stagflation
National living standards, measured by inflation-adjusted household disposable income per household, remain at mid-2020 levels. Analysts expect the economy to slip back into a per capita recession amid stagflation—low growth and high inflation. Shane Oliver, AMP's chief economist, noted that lower-income households have been hit hardest by rising costs for essentials like electricity, insurance, and healthcare. "Consumer confidence seems to be chronically stuck around recessionary levels," Oliver said.
Guardian Australia previously reported that wages for the highest-paid workers have grown at more than double the rate of the lowest-paid over the past decade. Oliver also pointed to happiness economics literature, which shows life satisfaction does not increase with material wealth beyond a middle-income threshold. He attributed the recent decline in satisfaction to thwarted hopes, particularly regarding home ownership. "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 said.
Social cohesion and resilience
Anthea Hancocks, chief executive of the Scanlon Foundation Research Institute, emphasised the impact of economic circumstances on social cohesion and self-worth. "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," Hancocks said. She also noted that social media has had a huge impact on how Australians perceive the world.
Despite these pressures, the Scanlon Foundation's social cohesion index has remained steady at 78 over the past three years, though down from a peak of 92 in 2021. Hancocks stressed the importance of community connections: "We know that regardless of your economic circumstances, if you live in a highly cohesive neighbourhood, your level of happiness doubles." Building trust and national pride are essential components to help people feel supported.
