Falling Australian life satisfaction makes cost of living top election issue

Australians are increasingly anxious about their personal and financial wellbeing, leading to the lowest life satisfaction in five years, according to new results from The Australian National University (ANU) Election Monitoring Survey Series.

The decline is particularly sharp among Australians aged 35 to 44, whose average life satisfaction has now fallen to around six out of 10. Women also reported a statistically significant drop.

Report author Professor Nicholas Biddle from ANU said the results came from more than 3,600 Australians surveyed after the federal election was called.

“Life satisfaction in Australia is now lower than it was in April 2020, lower than during the first lockdowns in August 2021, lower than just prior to the last election and even lower than it was in January of this year,” Professor Biddle said.

The survey also found nearly one-third of Australians are finding it difficult to make ends meet on their current income.

Professor Biddle said the financial stress was despite a very strong labour market, substantial easing of inflationary pressures, and financial relief measures included in the recent federal budget.

He said one of the reasons for a disconnect between individual measures of financial stress and the macroeconomic environment is that these things build up over time.

“The cumulative effects of inflation, the cumulative effects of higher interest rates and the cumulative stress of worrying about what the economy’s going to look like into the future is really impacting on how financially stable people feel and also just their general wellbeing,” Professor Biddle said.

The combination of pressures means the cost of living remains the dominant concern for voters, with 74.6 per cent rating it as the top priority.

“These pressures have not, however, translated into the type of anti-incumbent views we saw in elections overseas in 2024. Indeed, the most recent survey results show a shift in favourability towards the Labor Party,” Professor Biddle added.

According to the Electoral Monitoring Survey Series, one-in-five voters have changed their vote over the last two months, making the final few weeks of the campaign decisive.