The latest findings from the Household, Income and Labour Dynamics in Australia (HILDA) Survey reveal a troubling snapshot of life in Australia, with rising income taxes, increased physical pain, and declining social connections. Conducted over 23 years, this survey tracks the lives of 17,000 Australian families, providing critical insights into changing societal trends.
Tax Burden and Economic Strain
According to the HILDA Survey, Australians are experiencing the highest average income tax rates in decades. Since the survey’s inception in 2001, the average tax burden has increased significantly, attributed primarily to “bracket creep” linked to nominal wage growth. Professor Roger Wilkins, a co-author of the report, noted, “Normally, wage growth is good for workers’ living standards, but prices were also rising rapidly, so bracket creep contributed to a decline in workers’ living standards in this period.”
Despite no recent changes in tax policy, the impact on household finances has been profound. Families are feeling the pinch as they navigate rising costs alongside stagnant wages, leading to increased economic stress.
Health Concerns and Changing Family Dynamics
Physical pain is also at an all-time high among survey participants, particularly affecting those from low-income households. The report indicates that bodily pain has risen by approximately 5.1 percent for men and 11.6 percent for women since 2001. When controlling for age, the increase remains significant, highlighting a troubling trend in public health.
Dr. Ferdi Botha, another co-author of the report, emphasized the correlation between income and health issues: “People from lower income households or without a Bachelor’s degree are more likely to report experiencing bodily pain. The less money you make, the more pain you’re likely putting up with.”
Additionally, the survey reveals that Australians are delaying retirement, with the percentage of workers retiring between the ages of 60 and 64 dropping sharply from 70 percent to 41 percent for women and from 49 percent to 27 percent for men over the past decade. Dr. Kyle Peyton noted that changes to pension eligibility and improvements in health allow more individuals to remain in the workforce longer.
The report also highlights a significant decline in fertility rates, with men now desiring an average of 1.99 children, down from 2.22 in 2005. Women’s desired family size has similarly decreased, from 2.35 to 2.09. This shift reflects changing societal values, with many young Australians opting for smaller families or choosing not to have children at all.
Social Isolation in a Post-Pandemic World
The survey further reveals a concerning trend in social connections, as Australians report having fewer friends than in the early 2000s. The average perceived number of friends has dropped from 4.6 in 2001 to 4.1 in 2023. Dr. Inga Lass noted, “Not only do we feel like we have fewer friends, we’re also socialising less frequently than in 2001.” The proportion of individuals meeting friends or relatives several times a week has decreased by more than 12 percentage points, indicating a shift in social engagement.
As Australia navigates these challenges, the findings from the HILDA Survey provide a critical lens into the evolving landscape of Australian life. The intersection of financial strain, health issues, and social connections paints a complex picture of contemporary living, highlighting the urgent need for policy responses to address these pressing concerns.
