Australian Social Cohesion Report Reveals Rising Economic Anxiety

Economic Strain And Social Outlook

The 2026 Scanlon report on social cohesion provides a detailed look at the current state of the Australian psyche, revealing a nation deeply divided by economic pressure. While the overall social cohesion index has remained steady at 78 out of 100 since 2023, this figure may mask significant underlying tensions. Nearly half of all Australians, approximately 48%, now express pessimism about the future of the country, an increase from 43% in 2025. This growing sense of unease is particularly evident among Millennials and Generation X, who have seen the most significant declines in reported happiness over the last decade.

Financial hardship is the primary driver of this discontent. The cost of living was identified as the top issue facing the nation by 36% of respondents, followed by housing affordability and shortages at 11%. The report highlights a concerning trend of systemic financial stress, with 13% of adults reporting that they have gone without food at least sometimes and others struggling to pay rent or mortgages on time. Approximately 20% of adults indicated they have had to forgo medicine or healthcare, or were unable to properly heat or cool their homes due to lack of funds.

Shifting Priorities And Future Fears

Interestingly, the report shows a shift in what Australians fear most regarding the future. While climate change and global conflict remain concerns, they have been outranked by newer anxieties. About 69% of respondents expressed worry regarding artificial intelligence, placing it above concerns for climate change at 55% and the possibility of military conflict at 51%. Furthermore, 77% of the population is concerned about a severe global economic downturn, underscoring the dominance of financial stability in the public consciousness.

Despite these pressures, the report finds that the fundamental pillars of multiculturalism remain resilient. A vast majority of Australians continue to support immigration, with 87% believing that immigrants are just as likely to be good citizens as those born in the country. Additionally, 76% agree that multiculturalism has benefited the nation, and 73% view immigrants as a positive contribution to the economy. However, the data does show a rise in negative attitudes toward specific immigrant groups and religious communities since 2024, suggesting that while the broad concept of diversity is supported, specific tensions are increasing.

Political Impact Of Financial Hardship

The intersection of economic pain and political affiliation is one of the report’s most striking findings. There is a clear correlation between financial hardship and a shift in voting intentions. People experiencing severe economic stress are significantly more likely to move away from traditional major parties. Among those who voted for the primary parties in the 2025 federal election, an estimated 47% of those facing financial hardship now prefer other candidates or parties, with a notable shift toward One Nation.

This economic distress is also eroding trust in national institutions. The report indicates that individuals experiencing financial stress have substantially weaker trust in the system of government. This polarization is starkly visible across different voting blocs. For instance, only 9% of One Nation voters trust the federal government to do the right thing, compared to 54% of Labor voters. Similarly, trust in the fairness of elections and the judiciary varies wildly depending on political leaning, with those in the most financial distress often viewing government leaders as abusing their power.

Ultimately, the report suggests that while the sense of belonging and community connection provides a buffer for social cohesion, the persistent pressure of the cost-of-living crisis is creating a volatile environment of distrust and anger that could have long-term implications for the country’s social and political stability.