Australians are feeling the strain of rising costs and an uncertain future, but there’s more that unites us than divides us. A new report from Deakin University and Australian Unity reveals declining national confidence, growing concerns and a shared desire for a safer, greener, more affordable Australia for future generations.
Australia’s Hopes and Challenges
Australians’ Subjective Wellbeing in 2026: Wellbeing Now and for Generations to Come
How are we feeling about life in Australia, and what kind of future do we want for the next generation? A new report from Deakin University and Australian Unity explores these questions, looking at how Australians feel about their own lives, the state of the country and the challenges ahead.
The findings reveal that many Australians are feeling less confident about the nation, while rising housing costs, the cost of living and concerns about artificial intelligence are adding to the uncertainty. Younger Australians are also experiencing high levels of stress and loneliness.
Yet there is a positive message in the report. Despite our differences, Australians share a surprisingly strong vision for the future. We want a safe and secure country, a healthier environment, affordable living and a strong economy for generations to come.
The report offers an interesting insight into how we are feeling today, what concerns us most and what we hope to create for the future.
For the first time in the Index’s history, Australians were surveyed twice in the same year. More than 10,000 adults took part between 13 April and 5 May 2026, and 1,494 of the same people were surveyed again between 14 and 27 September 2026, allowing researchers to track how their wellbeing and views changed across the year.
What the 2026 Index found:
- A shared vision for the future. Asked in their own words what kind of Australia they want for future generations, more than half of Australians (58.1%) named at least one of four themes: safety (21.6%), environmental action (19.5%), an improved cost of living (18.3%) and a secure economy (17.1%). These were the most common themes regardless of age, income, gender, location, education or language spoken at home.
- Confidence in the nation fell. Compared with 2025, the National Wellbeing Index fell 3.2 points to 54.8 out of 100, with the largest drops in satisfaction with the economic situation (down 5.7 points) and government (down 5.3 points).
- Concern about AI rose sharply. The share of Australians expecting AI to have a high negative impact on their own lives rose 9.3 percentage points between April–May and September, the biggest shift of the five challenges examined. The largest increase was among Australians aged 65 and over (up 15.1 percentage points).
- Housing is seen as the biggest challenge for future generations. More than four in five Australians (83.4%) believe housing cost and availability will have a high negative impact on future generations, the highest of the five challenges examined. About seven in ten 18 to 34-year-olds expect a high negative impact on their own lives.
- Young Australians are under strain. More than one in two 18 to 24-year-olds (56.1%) reported high or very high psychological distress, and almost one in two (45.7%) felt lonely at least some of the time.
- Personal wellbeing fell over the year. The Personal Wellbeing Index dropped 1.1 points between April–May and September. Australians aged 65 and over recorded the largest fall but continue to report the highest personal wellbeing of any age group.
“That shared vision is a genuine starting point for decisions being made today and a reminder that there is more connection between us than disconnection,” said Dr Kate Lycett, lead researcher of the Index at Deakin University.
“This year’s Index shows that Australians are remarkably united on the future they want,” said Kelly Bayer Rosmarin, Group Managing Director and CEO of Australian Unity.
To read the report, download your copy.
