Report – Deakin University and Australian Unity Limited 2024, 11 November 2024

Australians’ subjective wellbeing in 2024: the housing and financial divide from ‘boomers’ to ‘zoomers’

The Australian Unity Wellbeing Index (AUWI) has monitored the subjective wellbeing of Australian adults (18+) for the past 24 years. Each year, the survey measures the subjective wellbeing of over 2,000 Australians aged 18+ against a series of national and personal life areas, including the economy, health, and community connectedness. This year, researchers also examined the areas of financial wellbeing, mental distress, loneliness, resilience, and relational support.

Key findings

  • Record low satisfaction with life in Australia: Australians’ overall satisfaction with their personal lives remained close to its lowest level recorded, while satisfaction with life in Australia reached its lowest level in the survey’s 24-year history.
  • Young adults are not alright: Adults aged 18-34 years reported the highest feelings of mental distress and loneliness and some of the lowest levels of personal wellbeing of any group across the adult lifespan.
  • Generational divides in financial wellbeing: One in two adults under 55 years old reported going without essential items because of money pressures and felt financially worse off than their parents were at their age.
  • Financial deprivation matters to personal wellbeing: Once again, those facing financial hardship, such as insecure housing, low incomes, or unemployment, reported some of the lowest levels of personal wellbeing.

Read the full report here: https://apo.org.au/sites/default/files/resource-files/2024-11/apo-nid328969_1.pdf.

Report – Australian Housing and Urban Research Institute Limited, 12 November 2024

Planning for a two-tenure future

Three out of five Australian renters say they expect they will never own their own home — a significant shift that requires rethinking of tax and housing systems so that governments’ support all Australians in a two tier housing market (of owners and renters) into retirement. The policy challenge is to make renting a good, long-term housing outcome for renters, particularly lower-income, older renters with limited superannuation.

This research highlights that in the Australian Housing Aspirations (AHA) survey a large majority (78%) of private rental tenants aspired to own their own home, while the research survey found three out of five (59%) private renters don’t think they will ever be able to afford to buy a home of their own.

Currently, homeowners receive tax concessions that are not available to renters. Examples include no capital gains tax on the sale of the primary residence (which becomes a form of wealth accumulation) and no tax on the imputed rental income of owner occupied housing. Conversely, renters are required to pay rent after income tax. A fairer housing and tax system (for retirement investment) could see some lower income private renters compensated for living long-term in the sector. This support could come through the provision of non-property investment opportunities (to reduce households’ need to ‘rentvest’) or targeted superannuation benefits.

Sustained underinvestment in social housing stock has also had long-term negative implications for all Australians and additional public housing construction is needed as a priority, together with policies to support private developers increasing the supply of affordable housing. In addition, a more immediate goal for policy development is to reform legislation controlling private tenancies so as to have better protections for tenants.

Read the full report here: https://apo.org.au/sites/default/files/resource-files/2024-11/apo-nid328973.pdf.