Australians are reporting lower life satisfaction levels today than they did during the height of the Covid-19 pandemic, according to new KPMG analysis of Australian Bureau of Statistics data.
The analysis found overall life satisfaction fell to 7.1 out of 10 in 2025, compared with 7.2 in 2020 when lockdowns and widespread restrictions were in place. The figure has dropped significantly from the pre-pandemic level of 7.5 recorded in 2019.
The findings also show life satisfaction has eased from the relatively stable range of 7.5 to 7.6 that was recorded between 2014 and 2019.
KPMG urban economist Terry Rawnsley said the decline reflects ongoing financial pressure rather than a temporary disruption like the pandemic lockdowns.
“Unlike the pandemic lockdowns, this isn’t a temporary disruption, it’s sustained pressure on living standards,” Rawnsley said.
According to Rawnsley, real wages declined by 4.1% between 2019 and 2025, while median household wealth remained stagnant at $700,000.
“These factors have left many average Australians in a precarious financial position for the better part of five years and is undoubtedly affecting how they feel about their lives,” he said.
Rawnsley said improving life satisfaction would require a long-term focus on factors that shape everyday economic experiences, including real incomes, housing affordability and financial resilience.