Mental health

Life satisfaction

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Key points

Responses from the Household Income Labour and Dynamics in Australia (HILDA) survey show:

Life satisfaction in Australia has remained stable at around 8 out of 10 since 2001.

Health, particularly mental health, shows the strongest association with life satisfaction.

Loneliness and weaker social connections are linked to substantially lower life satisfaction.

Introduction

What is life satisfaction?

Life satisfaction refers to how people evaluate the overall quality of their lives. It is recognised internationally as a key component of subjective well‑being (ABS 2025; Veenhoven 1996; OECD 2013).

Life satisfaction reflects a broad sense of how life is going across domains such as relationships, work, health and personal development (OECD 2013). Internationally, life satisfaction tends to be higher in countries with strong economies, low crime, and robust social and political institutions, while cultural values and personal circumstances also play a role (Diener et al. 2013).

What influences life satisfaction?

Life satisfaction is influenced by a wide range of personal, social and economic factors. Research consistently highlights the importance of supportive relationships, stable employment, financial security and good physical health in promoting higher life satisfaction (Botha and Tomaszewski 2021; Headey et al. 2013). Psychological wellbeing also plays a key role, with evidence showing that life satisfaction is closely associated with mental health status throughout life (Fergusson et al. 2015; Lombardo et al. 2018).

How has life satisfaction changed over time in Australia?

According to the Household, Income and Labour Dynamics in Australia (HILDA) survey, average life satisfaction in Australia has remained stable since 2001, at around 7.9 on a scale where 10 means ‘completely satisfied’.

Figure 1: Average life satisfaction levels in Australia, 2001 to 2024

Line graph showing average life satisfaction levels in Australia from 2001 to 2024 are stable at around 7.9.

Source: Household, Income and Labour Dynamics in Australia (HILDA) Survey, waves 1-24.

Life domains associated with overall life satisfaction

Australians’ overall life satisfaction is most strongly linked to how satisfied they are with their health, followed by their feelings of safety, finances, and housing. There are also positive, but less strong, connections between life satisfaction and community ties, job opportunities and free time. This highlights the central role of health in shaping how Australians feel about their lives.

Figure 2: Correlation of life satisfaction domains, 2001 to 2024

Horizontal bar chart showing how strongly each life domain relates to overall life satisfaction. Health, safety and financial satisfaction show the strongest links.

Source: Household, Income and Labour Dynamics in Australia (HILDA) Survey, waves 1-24.

Who has higher life satisfaction in Australia?

Life satisfaction is higher among older people, as well as those with better health, greater socioeconomic advantage and stronger social connections. It is lower among those experiencing health problems or social or economic disadvantage.

Demographics

Life satisfaction varied with age, with higher levels reported among people aged 65 years and over (8.3 in 2024). Males and females reported similar levels for all ages. Differences by country of birth have narrowed over time, with life satisfaction now similar for people born in non‑English‑speaking countries and those born in Australia or other English‑speaking countries.

Health

People’s health, particularly their mental health, is strongly associated with how satisfied they feel with their lives. People in better physical and mental health report much higher satisfaction levels than those in poor health, while poor health is associated with challenges in work, income, and social connection that may compound over time and affect overall wellbeing.

General health

Australians with good self-assessed general health, as measured by the SF-36 general health measure, consistently reported higher life satisfaction than those with poor general health. The difference between these groups was large, at around 1.1 to 1.4 points over time, well above the 0.2-point difference considered meaningful by the OECD (2024).

In 2024, people with good general health had a higher average life satisfaction (8.1) compared with those with poor general health (6.9). This gap highlights the strong association between general health and life satisfaction in Australia. See technical notes for more information about how poor general health is defined from HILDA survey data.

Mental health

Mental health shows a stronger association with life satisfaction than general health. Between 2001 and 2024, people with good mental health reported stable life satisfaction at around 8.1, substantially higher (1.2 to 1.6 points) than people with poor mental health. Although life satisfaction among people with poor mental health improved modestly over time, increasing from 6.5 to 6.9, it remained substantially lower than among those with good mental health.

People at high or very high risk of psychological distress, or with long‑term mental health conditions, also reported markedly lower life satisfaction than other groups. See technical notes for more information about how poor mental health, psychological distress and long-term health conditions are defined from HILDA survey data.

Socioeconomic factors

Socioeconomic factors such as income, employment and home ownership were moderately associated with life satisfaction. However, differences between socioeconomic groups were smaller than those seen with health status.

People with higher incomes had better life satisfaction, but differences between income groups were modest. Renters reported lower life satisfaction than people who owned their home or were paying off a mortgage.

Unemployed people consistently reported lower life satisfaction than those who were employed, or those not in the labour force by choice.

While people with higher education levels reported slightly lower life satisfaction in the early 2000s, there was little difference between education groups by 2024.

Social connections and relationships

People with strong social connections and supportive relationships report higher levels of life satisfaction.

People who were legally married or widowed generally reported higher life satisfaction than other groups, while people who were separated consistently reported being least satisfied. People in de facto relationships and those who had never married tended to report life satisfaction levels between these groups, with relatively stable patterns over time.

Loneliness was associated with lower life satisfaction, and people with parenting responsibilities reported slightly lower levels overall, although this gap has narrowed over time.

Geography

Where people live can influence how satisfied people are with their lives. People living in regional and remote areas experience slightly higher life satisfaction levels than those in major cities. Living in a more disadvantaged area is consistently associated with lower life satisfaction.

Smoking and alcohol use

Lifestyle factors such as smoking and alcohol use, which can have impacts on overall health, have only modest associations with life satisfaction. Smokers have slightly lower life satisfaction than non-smokers or ex-smokers. People who consume alcohol may be benefiting from increased social interaction and report slightly higher life satisfaction than non-drinkers.

Explore the differences in life satisfaction across population groups in ‘Figure 3: Life satisfaction by population group, 2001 to 2024' below.

Figure 3: Life satisfaction by population group, 2001 to 2024

Interactive graph showing life satisfaction in Australia from 2001 to 2024 for different population groups.

Population group
Gender

Source: Household, Income and Labour Dynamics in Australia (HILDA) Survey, waves 1-24.

Life satisfaction and health

The relationship between health and life satisfaction is often described as ‘bidirectional’ – good health can improve life satisfaction, while higher life satisfaction may also be associated with better health outcomes. Studies consistently show that physical and mental health predict life satisfaction, while evidence that life satisfaction predicts later health is more mixed and varies by age, outcomes measured and methods used (Hill et al. 2026; Moreno-Agostino et al. 2021). Other studies suggest that declines in health and life satisfaction can influence each other over time, indicating that these outcomes may change together rather than in a single direction.

Across the HILDA Survey period, people with below-average life satisfaction consistently reported poorer general health than those with above-average life satisfaction. The gap between groups widened over time, as the proportion of people reporting poor general health increased among those with below-average life satisfaction, from 18% in 2001 to 22% in 2024, while remaining relatively stable around 6% to 8% for those with above-average life satisfaction.

Similar patterns were observed for mental health. The proportion of people reporting poor mental health was substantially higher during 2024 among those with below-average life satisfaction (39%), compared with those with above-average life satisfaction (10%). People with below-average life satisfaction also experienced increased risk of high or very high psychological distress and long‑term mental health conditions over time, compared with people with above-average life satisfaction.

Overall, these findings highlight a strong association between lower life satisfaction and poorer mental health outcomes.

Explore the proportions of people experiencing poor general health, poor mental health, high or very high psychological distress, or long-term health conditions according to their overall life satisfaction in ‘Figure 4: Life satisfaction and health, 2001 to 2024’ below.

Figure 4: Life satisfaction and health, 2001 to 2024

Interactive line graphs showing the differences in general and mental health by life satisfaction in Australia from 2001 to 2024.

Measure

Source: Household, Income and Labour Dynamics in Australia (HILDA) Survey, waves 1-24.

Key data gaps and data improvement activities

Key data gaps

The Household, Income and Labour Dynamics in Australia (HILDA) survey does not cover certain population groups and areas in its sampling process due to high operational complexities and costs, resulting in specific data gaps (Watson and Wooden 2002).

Population groups not included:

  • diplomatic personnel of overseas governments
  • overseas residents who had stayed or intended to stay in Australia for less than one year
  • members of non-Australian defence forces and their dependents
  • residents of institutions (for example, hospitals, care facilities, military installations, correctional facilities, convents) and other non-private dwellings (for example, hotels, motels)
  • individuals living in remotely or sparsely populated areas.

HILDA focuses on national-level research. Despite exclusions, HILDA provides robust representation for multiple sub-group analyses at the national level.

Data development activities

The HILDA survey collects data annually, typically running from July to March of the following year. Updates to the analysis of HILDA data in this report will be made as new data becomes available. Ongoing monitoring of life satisfaction alongside mental health, social connection and socioeconomic factors will help track how wellbeing changes over time and identify groups with persistently lower outcomes.

Further analysis will also strengthen understanding of how life satisfaction, health, social connections, and other socioeconomic factors are linked across people’s lives. This will include the use of more advanced analytical approaches, such as regression modelling, to better examine how life satisfaction is related to mental health outcomes. This work will support clearer evidence on wellbeing in Australia and help inform future policy and service planning for people at greater risk of poorer health and wellbeing outcomes.

Where can I find more information?

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If you’re feeling overwhelmed, anxious, or depressed about your situation, it’s important to seek support early to reduce the risk of more serious mental health impacts. To access crisis and support services visit: Crisis and support services

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