Australians are showing signs of recovery from earlier declines in wellbeing, according to the National Australia Bank's (NAB) latest Wellbeing Survey for the second quarter of 2025. The NAB Wellbeing Index rose to 63.5, up from a record low of 62.4 in the previous quarter, reflecting improved satisfaction across most aspects of daily life.
The survey highlights that many Australians have made changes in response to ongoing cost-of-living pressures. Over the past three months, 36% drew down savings more quickly, 31% reduced or cancelled health practitioner visits, and 11% took on second jobs or worked longer hours.
Dean Pearson, Head of Behavioural and Industry Economics at NAB, commented on these trends: “People aren’t just grumbling about things. They’ve made very real and tangible behavioural changes to their lifestyle, and that’s impacted them. Australians have not simply been in a bad mood—they’ve responded with effort and resilience.”
There are also signs that financial stress is easing after two consecutive quarters of increase, especially among higher income earners. Australians reported higher satisfaction with government performance and the economy during this period. According to Pearson: “There are some clear green shoots. Australians are scoring satisfaction with most aspects of their lives better, including Government and the economy. Optimism is also up.”
The report notes that cost-of-living concerns appear to be lessening for some households as more people believe interest rates have peaked and expect them to decline in the future.
Intergenerational support remains significant in Australian households. More than one in five people aged over 50 are providing financial assistance to children or grandchildren—mainly for day-to-day living expenses—with some funds also going toward school fees and home deposits.
Pearson said: “Grandparents and parents are really leaning in. The vast majority of support is going to helping young people manage cost of living and day-to-day expenses. But it’s also having implications for their long-term financial security.” About one-quarter of those over 50 who give financial help say it negatively affects their own ability to meet commitments or maintain their desired lifestyle.
Migrants were identified as particularly optimistic compared with Australian-born residents; around half of newly arrived migrants report high optimism versus only one-fifth among the general population.
“This is a potent reminder of the prosperity we have here,” said Pearson. “Clearly, migrants—particularly newly arrived migrants—are incredibly positive. The only downside is that within about 10 years, their optimism recedes to the level of the general population.”
The survey found that migrants are more likely both to receive and provide family financial support, underlining strong community ties.
Further details can be found by reading NAB’s Australian Wellbeing Survey Q2-2025.