Recent national disasters such as floods and fires exposed pressures on community infrastructure and exposed patterns of exclusion, according to ANU research.
While Australians are broadly supportive of democracy in principle, they are less satisfied with its outcomes, the report released on Thursday found.
Just under 44 per cent of Australians aged between 18 and 24 agreed democracy was always the preferred option, compared to almost 90 per cent of people aged 75 and over, according to the research.
Just over 80 per cent of people aged 65 to 74 picked democracy in every instance.
Age wasn't the only indication of support. Almost two-thirds of people under 34 with a university degree supported democracy, dropping to one in five for those who hadn't completed high school or had non-university tertiary qualifications.
"Once age is controlled for, education is positively associated with democratic support, indicating clear social polarisation by education," the report states.
Females were less supportive overall, while religious people were more supportive.
People who believed there was a fair distribution of income in Australia were overwhelmingly supportive of democracy (78 per cent), and this dipped significantly for those who believed it was unfair (59 per cent).
Those experiencing financial strain were less likely to be satisfied with the system of government.
"Perceptions of unfairness and limited opportunity further explain variation in support," the report noted.
Between two-thirds and three-quarters of respondents were satisfied with how the system of government was working according to the poll, taken between October 2024 and after the May 2025 election.
"This leaves almost one-third of Australians that are either ambivalent towards democracy, or sceptical of its benefits," the report's co-author Nicholas Biddle said.
The royal commission into anti-Semitism and social cohesion following the Bondi terrorist attack will examine strengthening support for democracy, freedom and the rule of law as a key defence to tackling anti-Semitism and extremist hate.
"For the royal commission, this implies that strengthening social cohesion cannot rely solely on enforcement, surveillance, or post-incident responses to anti-Semitism," the report said.
"It must also address the structural and attitudinal conditions that weaken democratic legitimacy: educational stratification, persistent financial stress, declining trust in political institutions, and pessimism about social mobility."
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