Aussies have fewer friends and higher tax bills, major survey reveals

A caller study has painted a grim image of life successful Australia, revealing a federation wherever group are emotion lonelier than ever, salary much taxation and are delaying their dreams.

The Melbourne Institute's yearly Household, Income and Labour Dynamics successful Australia (HILDA) Survey, which has tracked nan lives of thousands of Australians since 2001, released its 2025 report today.

It highlights really everything from rising surviving costs to nan erosion of societal networks is taking a toll connected nan nation's well-being.

The study recovered that our societal connections are weakening, a inclination exacerbated by nan COVID-19 pandemic.

Australians are reporting less friends and little predominant socialising than astatine nan move of nan century.

"Not only do we consciousness for illustration we person less friends, but we're besides socialising little often than successful 2001," elder investigation chap and study co-author Dr Inga Lass said.

The proportionality of group gathering friends aliases relatives respective times a week aliases much has dropped by complete 12 percent points, from astir 32 per cent to conscionable 20 per cent.

This diminution successful societal relationship has imaginable implications for our wide well-being.

The study besides recovered that a mostly of Australians now study experiencing bodily pain, a inclination that has worsened since 2001, moreover erstwhile accounting for nan nation's ageing population.

People successful lower-income households were besides much apt to study experiencing pain, co-author Dr Ferdi Botha said.

"The little money you make, nan much symptom you're apt putting up with," Botha said.

The hidden taxation of inflation

The study revealed that Australians are paying nan highest mean income taxation complaint since nan study began successful 2001.

This is not owed to a alteration successful argumentation but alternatively to "bracket creep".

As wages person risen to support gait pinch inflation, galore workers person been pushed into higher taxation brackets, efficaciously reducing their existent purchasing power.

Professor Roger Wilkins explained that while costs maturation is usually a bully thing, a operation of bracket creep and quickly rising prices has contributed to a diminution successful workers' surviving standards successful caller years.

This arena affects middle-income earners much importantly than high-income earners.

Wilkins besides highlighted a reversal successful family spending patterns.

Prior to 2021, Australians were spending little connected necessities.

However, nan caller cost-of-living situation undid that progress, pinch nan full proportionality of income spent connected necessities jumping by 4.5 per cent betwixt 2021 and 2023.

Economic pressures reshape family and work

The study besides sheds ray connected really economical pressures are influencing our biggest life decisions.

For nan first time, nan mean number of children men want has fallen beneath two.

While having 2 children remained nan astir communal wish, there's a notable summation successful nan number of people, some men and women, who now want only 1 child, aliases nary astatine all.

Lass attributed this to imaginable parents increasing "more concerned astir their financial information and nan costs of raising a child."

Finally, nan conception of retiring successful your early 60s is accelerated becoming a point of nan past.

The proportionality of women aged 60-64 who are retired has plunged from 70 per cent successful 2003 to conscionable 41 per cent successful 2023.

For men successful nan aforesaid property bracket, nan status complaint has fallen from 49 per cent to a debased of 27 per cent.

While immoderate are choosing to activity longer, nan study points to a much unsettling inclination for many.

The number of retirees surviving successful backstage rentals has doubled successful 2 decades, facing important financial strain arsenic mean yearly rent payments person surged by 37 per cent successful existent terms.

Report co-author Dr Kyle Peyton warned that "superannuation unsocial will not beryllium capable to support nan increasing number of younger Australians locked retired of homeownership".