The Australian National University (ANU) June 2026 poll shows average life satisfaction has dropped to the lowest level recorded since they first started asking those questions consistently in 2023.
The report states its findings reveal a "population under considerable strain".
ANU School of Politics and International Relations Head Professor Professor Nicholas Biddle told AAP he was shocked to see interpersonal trust had fallen to 5.32 out of a scale of 10.
This drop is below levels recorded during the COVID-19 lockdowns.
He says ANU has been collecting wellbeing data since 2008, but ramped up efforts since the pandemic.
"To a little bit of our surprise, there has been a continuation of these quite volatile conditions," he told AAP.
"All of these things you can't predict when they're going to occur, but it's really important to understand the impact which they're having on people."
The way Australian's feel about how the country's democracy operates also fell significantly, dropping nearly three per cent to 62.8 per cent.
However, those surveyed indicated they still support democracy as a governance system.
Professor Biddle says this has grown significantly in the past year, rising from 66.9 per cent in May 2025 to 72 per cent in June 2026.
"Australians are becoming more critical of how democracy is being delivered without withdrawing their commitment to democracy itself," Professor Biddle says.
The ANU poll surveyed more than 3500 adults, and while it states wellbeing levels remain stable, they are at a low base.
Prof Biddle says there is a lot to be done to restore trust in Australia's democratic institutions.
"I think if governments aren't seen to to be listening and responsive to people's concerns, then that's another way in which trust can be undermined," he told the AAP.
"The structure of the economy, the structure of key public policy is just not working and there is also a real, genuine external uncertainty which is impacting on people's lives."
6°C