Australia is grappling with significant changes in social and economic conditions, according to the latest findings from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The data reveals that Australians are facing the highest income tax rates in decades, a dramatic rise in reported bodily pain, and a decline in social connections.
The HILDA Survey, which has tracked the lives of approximately 17,000 families since its inception in 2001, provides a comprehensive overview of various factors affecting life in Australia. The recent report, marking the 20th iteration of this study, indicates that tax burdens have increased significantly, primarily due to “bracket creep” resulting from nominal wage growth without corresponding adjustments to tax brackets.
Professor Roger Wilkins, one of the report’s co-authors from Melbourne University, 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.”
Rising Bodily Pain and Extended Work Life
The survey highlights a troubling trend in physical health among Australians. Reports of bodily pain have surged, with men experiencing a 5.1 percent increase and women reporting an alarming 11.6 percent rise since 2001. Even when accounting for age, the data shows that pain levels have still risen by 4.8 percent for men and 5.6 percent for women.
Dr. Ferdi Botha, another co-author of the study, explained that individuals from lower-income households or those without a Bachelor’s degree are disproportionately affected. He stated, “The less money you make, the more pain you’re likely putting up with.”
The report also reveals that these health issues are impacting workforce participation, with more Australians remaining in their jobs longer. The percentage of workers retiring between the ages of 60 and 64 has plummeted from 70 percent to 41 percent for women, and from 49 percent to 27 percent for men over the past decade.
Dr. Kyle Peyton suggests that changes in pension eligibility and improvements in health at older ages may contribute to this trend. “More people are physically able to keep working later in life,” he said.
Declining Fertility Rates and Social Isolation
The HILDA Survey also points to a concerning drop in fertility rates. Respondents indicate a desire for smaller families than in previous decades. The average number of children men wish to have has decreased from 2.22 in 2005 to 1.99 in 2023. Women have similarly reduced their desired family size from 2.35 to 2.09.
Dr. Inga Lass noted that while the most desired family size remains at two children, there has been an increase in the number of individuals expressing a desire for only one child or none at all. “This trend is especially pronounced in younger age groups,” she added.
Compounding these issues, the survey indicates that Australians are experiencing a decline in social connections post-COVID-19. The average number of friends reported by respondents has decreased from 4.6 in 2001 to 4.1 in 2023. The proportion of people meeting friends or family several times a week has dropped significantly, from around 32 percent to 20 percent.
Dr. Lass commented on this social shift, stating, “Not only do we feel like we have fewer friends, we’re also socialising less frequently than in 2001.”
The findings from the HILDA Survey present a stark picture of current Australian life, highlighting a range of challenges that may impact the future well-being of the population. As the country navigates these difficulties, the data underscores the need for policies that address economic disparities, health care access, and social engagement.
