A new annual report on social cohesion from the Scanlon Foundation reveals a complex picture of Australian society characterized by deepening discontent and distrust, even as support for immigration remains robust. The study, which surveyed more than 10,000 Australians, found that while the headline Scanlon index of social cohesion has remained steady at 78 out of 100 since 2023, underlying indicators show increasing strain. Dr James O'Donnell from the Australian National University, the report's lead author, noted that while people are under significant economic pressure and blaming immigration, there is no evidence yet that this sentiment is permanent.
Economic hardship has emerged as the primary driver of public anxiety, with cost-of-living pressures cited by 36% of respondents as their top issue. This concern far outweighs other major topics; housing affordability was second at 11%, followed by general economic issues at 10% and immigration at 9%. In stark contrast, climate change was identified as a top issue by only 4% of people. However, when asked about broader "major issues," 77% expressed concern over a potential global economic downturn. Furthermore, artificial intelligence has become a significant worry for 69% of Australians, ranking higher than concerns about climate change (55%) or military conflict involving Australia (51%).
The financial stress is tangible and widespread, with the report detailing that 20% of adults are unhappy with their financial situation. Specific hardships include 13% who have gone without food at times, 16% who sold possessions for cash, and roughly one in five who struggled to afford medicine, healthcare, or heating and cooling for their homes. This economic pain is visibly impacting happiness levels, particularly among Millennials and Generation Xers. Since 2014, the proportion of happy Millennials has dropped from 84% to 75%, while unhappiness in this group rose from 16% to 25%. Nearly one-third of all respondents now expect their lives to worsen over the next four years, and 48% are pessimistic about Australia's future.
Despite these challenges, public support for multiculturalism remains high. Approximately 87% of Australians believe immigrants are just as likely to be good citizens as those born in Australia, while 76% agree that multiculturalism has benefited the nation. However, the report highlights a rise in negative attitudes toward specific groups. Negative sentiment toward Indian immigrants increased from 25% in 2024 to 33% in 2026. Additionally, new data shows rising negativity toward immigrants from Israel (36%), Palestine (39%), and Iran (41%). Prejudice against Jewish people rose to 18%, while negative attitudes toward Muslim people climbed to 43%. Conversely, negativity toward Christians decreased from 19% to 13%.
The economic distress is also reshaping the political landscape. The report suggests that financial hardship is eroding support for the Labor and Coalition parties, with affected voters increasingly turning to One Nation or the Greens. Among those who voted for Labor or the Coalition in the 2025 federal election, an estimated 47% of those experiencing financial hardship now prefer a different party, compared to only 36% of those reporting no hardship. This shift is accompanied by a sharp decline in institutional trust among financially stressed voters. Political polarization is evident in these findings: only 9% of One Nation voters trust the federal government to do the right thing, compared to 54% of Labor voters. Similarly, while 81% of Labor voters believe elections are fair, only one-third of One Nation voters share this view.
Sources: The Guardian Technology.