Australia has been named one of the top three countries in the world for wellbeing, alongside the Netherlands and Singapore, in a major new international study.
Researchers from Charles Darwin University and Griffith University analysed more than 20 years of data across 48 countries to uncover what truly drives quality of life — and the answer isn’t money.
Health and access to quality healthcare emerged as the strongest drivers of wellbeing globally, followed by social capital: the value of positive human connections.
The study used a new measure, the Multidimensional Well-Being Index (MDWI), which captures health, finance, social connection, safety and more. Australia, the Netherlands and Singapore all scored above 0.70, while Peru and Iran ranked lowest.
“Wellbeing is not just about economic growth. It is about people’s health, their relationships, and the strength of the communities they live in,” said lead author Dr Mohammad Rajib Hasan, a Lecturer in Economics and Business at CDU.
There’s a warning in the data for Australia, however. Social capital was our biggest contributor to wellbeing back in 2009, but it has since been overtaken by health.
“This implies that people in Australia are enjoying better healthcare facilities,” Dr Hasan said. But he warns the slide in social connection is cause for concern.
“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,” he said.
Within Australia, Tasmania, Queensland and the Northern Territory recorded the lowest levels of wellbeing.
Dr Hasan says the index could be used to support more targeted and effective policy decisions.
“If we understand what truly drives well-being in a country, we can design smarter policies — whether that means investing in healthcare, strengthening communities, or improving governance,” he said.
The study, Intertemporal analysis of well-being and its contributing factors: Cross-country evidence, was published in the International Journal of Wellbeing.
