Australia’s social cohesion holds steady despite rising economic anxiety

A comprehensive annual review of Australian society has revealed that social cohesion remains stable, even as residents face growing economic pressures and a deepening sense of distrust toward government institutions. The study, conducted by the Scanlon Foundation, surveyed more than 10,000 adults on a wide range of topics including life satisfaction, financial health, and political views. Despite widespread feelings of financial strain, the core metrics of social belonging and community acceptance have not significantly deteriorated.

The headline Scanlon index of social cohesion stood at 78 out of 100, a figure that has remained consistent since 2023. Dr. James O’Donnell, the lead author from the Australian National University, noted that while there is evident discontent, the fundamental bonds holding communities together show resilience. He observed that people are still volunteering and maintaining high levels of trust in their immediate neighbors, suggesting that the current pressures may not be permanent shifts in social behavior.

However, the stable headline number masks underlying tensions. Sixty-two percent of adults believe that social cohesion has actually declined in recent years. Happiness levels have dropped noticeably for Millennials and Generation Xers. For Millennials, the share of unhappy respondents rose from 16% to 25% since 2014, while for Generation X, it increased from 19% to 23%. Nearly one-third of all respondents expect their personal circumstances to worsen over the next four years, up from 29% the previous year.

Economic hardship is the primary driver of this pessimism. Cost of living was cited as the top issue by 36% of participants, far ahead of housing affordability at 11% and immigration at 9%. A significant portion of the population is experiencing financial stress that is affecting their daily lives. Thirteen percent of adults reported going without food at least sometimes, while another 13% struggled to pay rent or mortgages on time. Approximately one in five people said they had to forgo medicine or healthcare, or ask for loans from friends and family.

These financial struggles are also influencing political allegiances. The report indicates that voters experiencing hardship are more likely to shift their support away from the major Labor and Coalition parties. Among those who voted for Labor or the Coalition in the 2025 federal election, an estimated 47% of those facing financial hardship now prefer a different party or candidate. This shift is particularly evident in the growth of support for the One Nation party, where 35% of current voters report having gone without meals, healthcare, or adequate home heating.

Attitudes toward cultural diversity are showing mixed signals. While negative perceptions of immigrants from India, Israel, Palestine, and Iran have increased, public support for multiculturalism remains very high. Eighty-seven percent of Australians believe immigrants are just as likely to be good citizens as those born in the country. Furthermore, 76% agree that multiculturalism has benefited the nation, and 73% believe immigrants have a positive impact on the economy.

Despite this broad support, specific measures of social acceptance have eroded. Negative attitudes toward Jewish people rose to 18% in 2026 from 13% in 2024, while negativity toward Muslim people increased to 43% from 33%. Similarly, negative views of Hindus and Sikhs also climbed. These shifts suggest that while the general concept of diversity is accepted, specific cultural groups are facing growing scrutiny.

Looking ahead, Australians are more concerned about artificial intelligence than about climate change or military conflict. While only 4% rated the environment as their top issue, 69% expressed worry about the impact of AI. A severe global economic downturn was the most significant concern, with 77% of respondents citing it as a major issue. This anxiety is fueling a broader distrust of institutions, particularly among voters who feel the economic pinch.

The report highlights a stark divide in political trust based on voting intention. Only 9% of One Nation voters trust the federal government to do the right thing, compared to 54% of Labor voters and 35% of Coalition voters. This polarization extends to perceptions of fairness in elections and the judiciary, with One Nation voters significantly less likely to believe these institutions operate impartially. The findings suggest that economic pressure is not just a personal burden but a key factor in reshaping the national political landscape.