Cost of living key concern amid ‘distinct negative shift in the national mood’, report finds

Australians are becoming increasingly pessimistic about the direction the nation is heading, with one weekly task in particular causing the most stress.

Clair Parker and Michael Parker with Edie, 3, and Owen, 6, enjoying the day at Sydney’s Centennial Park. Picture: Adam Yip

Cost-of-living pressures have emerged as the leading concern for households as Australians become increasingly pessimistic about the path the country is taking, a major survey has revealed.

Identifying a distinct negative shift in the national mood, the survey shows a strong majority of Australians, 61 per cent, believe the country is heading in the wrong direction, up from 51 per cent in April, as a result of soaring cost-of-living pressures.

The latest SEC Newgate Mood of the ­Nation report highlighted a rise in despair about the economy, with 55 per cent of Australians believing it will deteriorate over the next year and 61 per cent over the next three months.

It also found 46 per cent of Australians are experiencing financial difficulties, up from 39 per cent in April, with women, middle-aged people, renters, casual workers and students the worst affected.

The decline in morale has also seen support for an Indigenous voice to parliament fall to 43 per cent, down from 52 per cent in April, with support noticeably low in key referendum states Western Australia and Queensland, men, older people and Coalition voters.

SEC Newgate Research partner David Stolper said the results, which included responses from a representative sample of 2207 people, reflected the tough economic conditions many Australians were grappling with.

“Our latest Mood of the Nation research shows a rapidly deepening cost-of-living crisis with 61 per cent of Australians believing the country is now heading in the wrong direction,” he said.

“Cost of living is really starting to bite hard in the community and people are deeply pessimistic about the economic outlook for the next 12 months.

“The results highlight the political challenges ahead for governments across the nation in managing voter expectations.”

The nation’s mood is also souring, with 59 per cent of Australians selecting negative emotions to characterise their state of mind such as “stressed”, “anxious” and “exhausted”.

An overwhelming 90 per cent of Australians surveyed said their biggest cost-of-living concern was groceries, followed by electricity.

“Australians are particularly worried about the rise in grocery and electricity prices,” Mr Stolper said. “Nearly half of Australians (46 per cent) are now experiencing financial difficulties, up 7 per cent in the last two months.”

Edie and Owen Parker, watched by parents Claire and Michael Parker, enjoy an affordable outing. Picture: Adam Yip

Michael and Claire Parker said the rising cost of living had forced them to stretch their salaries further and opt for free outings to Sydney’s Centennial Park to entertain their children Owen, 6, and Edie, 3, during the school holidays.

“It‘s pretty tough,” Mr Parker said. “Both myself and my partner are teachers so there’s not a lot of spare cash around and everything’s more and more expensive.

“Instead of going places with the kids, you do outdoor things which don’t cost money, and then with the food (we’re choosing) cheaper cuts of meat.”

“I probably would have done bowling today,” Ms Parker said. “But the cheapest I could find today was $50 for one game for the four of us.”

Less than a third of Australians believe it is a good time to buy a house (32 per cent), buy an investment property (27 per cent), or rent a home (20 per cent), with people in Melbourne the most despondent about the rental market.

The majority of Australians surveyed support action to curb spiralling rents, including rental controls and increasing new housing supply, with two-thirds agreeing with the Greens that rent rises should be capped at 2 per cent per year and 60 per cent wanting to freeze all rent increases over the next two years.

However, 63 per cent are opposed to allowing state governments to bypass local laws to push through new housing developments.

Action on climate change is also slipping out of Australians’ top priorities, however the majority, 61 per cent, feel positive about the transition to renewable energy. More than half believe the pace of the transition has been too slow, and the federal government’s 2030 emissions target of 43 per cent and zero emissions by 2050 continue to be supported by the majority.

“Despite growing concerns about rising energy prices, most Australians continue to support the energy transition and emissions targets – although climate change is becoming a less prominent issue than it was at the time of the last federal election,” Mr Stolper said.

Cracking down on crime and anti-social behaviour has been pushed higher on Australians’ list of priorities, with 56 per cent of people surveyed saying it was “extremely important”, an increase of 4 per cent.