Bold policy action required as Australia falls behind on social, economic and environmental wellbeing

Monash University Media Release

Bold policy shifts are needed to get Australia’s falling social, economic and environmental wellbeing back on track, new modelling from Monash University shows.

Developed by the Monash Sustainable Development Institute (MSDI), the modelling shows a lack of action now to plan for decades ahead will leave the nation with persistent poverty, income inequality and further biodiversity decline across the country.

The new modelling is detailed in the University’s third Transforming Australia: SDG Progress Report, which tracks the nation’s progress towards the UN Sustainable Development Goals – 17 goals Australia and other nations adopted in 2015 to improve social, economic and environmental wellbeing.

Across the 80 indicators assessed, the report found progress has stalled or is going backwards on more than half, and Australia is lagging behind other OECD nations.

To reach more than 80 per cent of progress towards these goals by 2030, and 90 per cent by 2050, the modelling recommends incorporating targets into national policy frameworks and reporting, including the federal government’s Intergenerational Report and Measuring What Matters framework.

It also urges the government to establish mechanisms to encourage long-term policymaking, such as appointing a Future Generations Commissioner.

MSDI Senior Research Fellow and Transforming Australia lead researcher Dr Cameron Allen said ambitious action and additional government investment across the next decade is crucial.

“Our modelling shows that with increased ambition Australia can halve poverty and reduce income inequality by a third, boost health, education and productivity, improve biodiversity, and deliver net zero greenhouse gas emissions by 2050,” Dr Allen said.

“The results confirm that if governments adopt an integrated and long-term approach to policy they can deliver tangible benefits for future generations of Australians.

“Without increased investment over the medium-term in key areas such as education and health, disaster resilience, sustainable food, energy and urban systems, and the natural environment, our future prosperity is projected to stagnate and decline, with GDP around $300bn lower by 2050.”

Monash’s Transforming Australia report reveals in addition to worsening outcomes in many areas, we are falling behind others in the OECD.

It found around 3.3 million Australians, or 12.7 per cent of the population, are living below the poverty line, worse than the OECD average of 12.1 per cent.

Close to 13 per cent of Australians experience food insecurity, compared to only 8.5 per cent in Europe and North America.

But it’s not all bad news, with the report also highlighting where Australia is improving and outperforming other nations.

The nation has narrowed the superannuation gender gap from 53 per cent in 2014 to 21 per cent in 2021.

The share of parliamentary seats held by women has jumped to 38.4 per cent, ahead of the OECD average of 32.8 per cent.

MSDI Chair Professor John Thwaites AM said it is important policy and business decisions are based on evidence about where Australia is today, and whether we are on track to meet the goals we have for ourselves and our children.

“Too much of our politics is focused on short-term issues, and not enough on how to tackle longer-term challenges that will determine if the next generation is the first to be worse off than their parents,” Professor Thwaites said.

“The challenge of longer-term thinking by governments is not a new thing, but it is inherently complex to achieve. A move to four-year fixed term federal elections would be a start here, but is only one small part of the larger picture.

“Our modelling sets out a clear and achievable way to overcome these challenges, and proves we can achieve better outcomes for even the most vulnerable Australians, but only if we act boldly and immediately.

“In so many areas, Australia’s progress is not only stagnating but going backwards and we have an obligation to future generations to take the right move at this critical juncture and truly transform Australia’s path.”

Read the full report online.

FAST FACTS

Australia is doing well on gender equity, clean energy, employment and safety:

• The gender gap in superannuation fell from 53 per cent in 2014 to 21 per cent in 2021.
• The share of parliamentary seats held by women has jumped to 38.4 per cent and is ahead of the OECD average (32.8 per cent).
• The share of renewable electricity has almost quadrupled to 35 per cent since 2010.
• Rates of unemployment (3.7 per cent), underemployment (6.4 per cent) and youth unemployment (8.5 per cent) have declined considerably.
• Australia has very low homicide rates (<1 per 100,000 population) and high feelings of safety (>90 per cent population feel safe walking at night) compared to our peers.

Growing inequalities threaten the wellbeing of many Australians:

• Around 3.3 million Australians (or 12.7 per cent) are living below the poverty line placing us worse than the OECD average (12.1 per cent).
• Close to 13 per cent of Australians experience food insecurity compared to only 8.5 per cent in Europe and North America.
• Wealth equality is in steep decline. The share of the nation’s wealth held by the bottom 40 per cent of Australians has declined by a third since 2004 to just 5.5 per cent.
• Parity in education outcomes for students from lower socio-economic groups has fallen by 25 per cent since 2018.
• Around 42 per cent of lower income renter households are living in housing stress.
• Almost 20 per cent of Australians are unable to raise emergency funds.
• Rates of psychological distress (14 per cent of adults) and suicide rates (12.3 per 100,000 population) continue to rise and are more than twice as high for Indigenous Australians.

Australia is falling further behind our peers on innovation and resource efficiency:

• Investments in research and development and knowledge-based capital have both declined to 40 per cent below the OECD average.
• Australia’s material footprint (31.1 tonne per capita) is nearly double that of leading countries such as the UK (17.7), France (18.0), and Japan (18.1).
• Resource efficiency as measured by the circularity rate is almost three times higher in Europe (11.5 per cent) than Australia (4.4 per cent).

Monash University’s Transforming Australia modelling

• Our new progress report also models two future scenarios for Australia, exploring bold and ambitious policies that could reverse negative trends and accelerate progress towards targets.
• Our modelling shows that without action Australia’s progress actually will decline over the long-term – with persistent poverty and income inequality and further biodiversity decline.
• By implementing our recommendations on ambitious policy action, including additional investment over 10 years, progress on national targets would reach more than 80 per cent by 2030 and 90 per cent by 2050.
• This includes tangible benefits for Australia by 2050, including to:
  • Halve poverty
  • Reduce income inequality by a third
  • Boost health, education and productivity
  • Deliver net zero greenhouse gas emissions
  • Improvements in biodiversity and resource efficiency, and
  • Boost Australia’s GDP by $300 billion by 2050

Monash’s Transforming Australia report key recommendations 

• Federal government sets bold and long-term vision, including national targets.
• Incorporate targets and metrics into policy frameworks and reporting, including the Intergenerational Report and Measuring What Mattersframework.
• Governments use an integrated approach to policy making to balance progress on economic, social and environmental targets.
• Establish mechanisms to promote long-term thinking, such as a Future Generations Commissioner.
• Governments use the latest data and integrated modelling to evaluate and prioritise policies that accelerate progress across multiple targets.

 

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