AUSTRALIA ranks among the world’s best countries for overall quality of life, but researchers warn declining social connection and trust are emerging challenges despite the nation’s strong health outcomes.
A new international study led by Charles Darwin University (CDU) and Griffith University has found Australia joins the Netherlands and Singapore as the highest-performing nations for overall wellbeing, based on a new Multidimensional Well-Being Index (MDWI).
The research analysed more than 20 years of data from 48 countries, using information from the World Values Survey to measure wellbeing across a range of factors including health, financial security, social capital, safety and governance.
Lead author and CDU Lecturer in Economics and Business Dr Mohammad Rajib Hasan (pictured) said the findings showed wellbeing extended far beyond economic growth.
“Wellbeing is not just about economic growth. It is about people’s health, their relationships, and the strength of the communities they live in,” Dr Hasan said.
“If we understand what truly drives wellbeing in a country, we can design smarter policies – whether that means investing in healthcare, strengthening communities, or improving governance.”
The study found health and access to quality healthcare are now the strongest contributors to wellbeing worldwide, followed by social capital, which reflects the value of positive human relationships and trust within communities.
Australia recorded an MDWI score above 0.70, placing it alongside the Netherlands and Singapore as one of the highest-ranked countries in the study. Peru and Iran ranked lowest, with scores below 0.50.
Researchers found Australia’s biggest contributor to wellbeing has shifted over time. In 2009, social capital was the nation’s strongest asset, but it has since been overtaken by health.
Dr Hasan said the change reflected improvements in Australia’s healthcare system but also highlighted growing concerns about declining social trust. “This implies that people in Australia are enjoying better healthcare facilities,” he said.
“But the downturn of social capital is alarming. It means there is a decline in social and institutional trust across Australia, and we need to work more on improving these aspects.”
Within Australia, Tasmania, Queensland and the Northern Territory recorded the lowest overall wellbeing levels compared with other states and territories, although health remained the single strongest contributor across all jurisdictions.
The researchers say the new Multidimensional Well-Being Index offers governments a more comprehensive way to assess quality of life and could help shape future policies aimed at improving both individual and community wellbeing.
The study was conducted alongside CDU Pro Vice-Chancellor for the Faculty of Arts and Society Professor Maneka Jayasinghe, and Griffith University Professor of Econometrics Professor Eliyathamby Selvanathan.