By Sohaib Shams
Nearly half of Australians are pessimistic about the country’s future, according to the 2026 Scanlon Foundation report on social cohesion, which also shows cost of living and artificial intelligence outranking climate change and war as top concerns.
Social Cohesion Index Steady
The Scanlon index of social cohesion held at 78 out of 100, unchanged since 2023, based on surveys of more than 10,000 adults. Despite the stable headline figure, 62% of respondents believe social cohesion has declined in recent years. Happiness levels fell most sharply among millennials and Generation X, with 48% of all Australians expressing pessimism about the national outlook, up from 43% in 2025.
Economic Pressures Drive Hardship
Cost of living was cited by 36% as the most important issue facing Australia, far ahead of housing affordability (11%) and other economic concerns (10%). The report found 20% of adults unhappy with their financial situation, while 13% had gone without food and 16% sold possessions for cash. Financial stress is described as “likely harmful to social cohesion.”
Immigration Attitudes Shift
Negative attitudes toward immigrants from India, Israel, Palestine and Iran increased in 2026, and hostility toward Jewish and Muslim Australians also rose. However, broad support for multiculturalism remains high: 87% believe immigrants are just as likely to be good citizens, 76% say multiculturalism has benefited the nation, and 73% see immigrants as good for the economy.
Political Implications
Financial hardship correlates with shifting voter allegiance. Among those experiencing hardship, 47% of previous Labor or Coalition voters now prefer another party, mostly One Nation. Trust in federal government is lowest among One Nation voters at 9%, compared with 54% for Labor supporters. The report’s lead author, Dr James O’Donnell of the Australian National University, said economic pressure, not general anger, drives the discontent.
