Nearly 2.2 million Australians aged 15 and older are living below the wellbeing poverty line, according to new data from the Australian Bureau of Statistics. The proportion of people reporting very low life satisfaction — rating their general satisfaction at four or below out of 10 — has doubled over the past decade, reaching 9.7% in 2025.
That compares with just 4.8% in 2014. The initial surge came during the COVID-19 lockdowns and has persisted as cost-of-living pressures mounted. Household disposable income per household, adjusted for inflation, remains stuck at mid-2020 levels, with analysts warning the economy could slip back into a per capita recession.
AMP chief economist Shane Oliver said lower-income households had been hit hardest by rising costs for essentials like electricity, insurance, and healthcare. He also pointed to the housing crisis as a key driver of dissatisfaction. “I suspect housing is the single biggest problem,” Oliver said. “If we managed that issue better, that would go a long way to addressing this.”
The data also reveals a stark divide in community engagement. Only 15% of those experiencing wellbeing poverty feel they have a say in important community matters, compared to 32% of all Australians. Among those with the highest life satisfaction, that figure rises to 46%.
Anthea Hancocks, chief executive of the Scanlon Foundation Research Institute, said economic hardship erodes social cohesion, trust, and participation. However, she noted that national social cohesion has remained resilient, with the institute’s index steady at 78 over the past three years, though well below the 2021 peak of 92.
Article and image source: theguardian.com
