Our first True Issues survey for 2026 puts a spotlight on the nation’s economic direction and household affordability stresses
The latest edition of our True Issues public opinion tracking and analysis is now available online, as featured in the Australian Financial Review by political editor Phil Coorey.
In a key finding that should grab the attention of all our readers, Australians’ perceptions about the direction of our national economy has never been more pessimistic in the time we have been asking this important question. Between November 2025 and February 2026 we have picked up a significant 14 point drop in the perceived net direction trend for Australia’s economy (i.e. the proportion who think it is heading in the right direction minus the proportion who think it is heading in the wrong direction). Now at -34 this result is almost 10 points worse than any previous point in the series and consolidates a key insight drawn from True Issues for some time now: people are very worried about the economic circumstances we are facing and are frustrated by policy makers’ efforts to respond.
Australians have emerged from their summer holidays particularly irritated by how the Federal Government is responding to the challenges the nation faces. Perceived performance of the Australian Government has fallen on the True Issues performance index from 47 to 41. This is the lowest level recorded since the Turnbull Government’s narrow election win in August 2016.
Our new special report into household affordability and the policy response delves further into some of the debate about inflation and both the fiscal and monetary response in light of the ongoing seriousness of this topic in the minds of so many Australians. Here our decision to consider what aspects of cost of living are generating stress for Australians offer some valuable economic insights.
We have also sought to present some comparative tracking of where Australians sit today on a range of key macroeconomic questions compared with how they felt in mid-2024. This reveals that Australians are increasingly concerned public spending is helping to fuel inflation. At the same time a majority feel the tax system is failing and needs reform. These insights are summarised below after we update you on our regular issues track.
Noteworthy and influential insights from True Issues research data have also been featured in some recent news coverage over the summer period. You can access some of those news pieces here:
- AFR opinion piece post Bondi terrorism
- David Speers ABC Online
- Tom Dusevic in The Australian newspaper
- James Campbell in the Daily Telegraph
True Issues 40 – February 2026
Unprompted, a majority (56%) of adults continue to name cost of living in their top three most important issues or concerns, and around three-quarters (77%) select it in their top five from a prompted list – similar to November 2025 results.
After living costs, housing supply and affordability remains ahead of hospitals and healthcare as the next most important issue to Australians (50% and 46% prompted responses, respectively). With housing prices and rent expected to continue to rise in 2026, housing remains top of mind for one in three adults (34%) and is even higher among 18 to 34 year olds (44%).
The economy and finances remains a key issue across all age groups (39%), amid RBA expectations of rising unemployment and slowing GDP growth this year. This is followed by increased community concern about immigration and border security (34% prompted responses, up from 26%). Immigration is the third highest prompted issue among older adults aged 55 and over, and a concern for a majority of One Nation voters.
Overall, more than one in three Australians remain optimistic about the future and continue to view their personal situation as heading in the right direction (35%), greater than the one in four (24%) who believe this is heading in the wrong direction.
Performance of governments
Ratings of Australian Government performance have declined since November and are below ‘average’ (i.e. an index score below 50) both overall and across all individual issues measured. The Albanese Government’s overall performance index score is 41 (down six points), a level last recorded by the Turnbull Government in August 2016, following its narrow election win.
Following this month’s cash rate increase, the greatest declines in perceptions of Government performance are on interest rates (index score of 33, down 10 points) and the economy and finances (index score of 37, down six points). Other key areas of decline include its worst performing areas of cost of living (index score of 22, down five points) and housing supply and affordability (index score of 24, down three points).
Social cohesion (index score of 35) is another poor performing area for this Government, as it works to implement its response to the December terrorist attack in Bondi.
Confidence in the national economy has declined further in February, to its lowest level since tracking began in 2013. Almost half of adults (48%, up from 40%) now rate the economy as heading in the wrong direction, compared with just 14% (down from 20%) who see it heading in the right direction.
At state level, rated performance is most positive for the South Australian and Western Australian governments (index score of 56 for each), followed by the Queensland Government (index score of 54). More residents see these state economies as heading in the right direction than in the wrong direction. This is an encouraging result for the South Australian Government as it heads into the 2026 state election.
The NSW Government continues to rate less well (index score of 49) and more NSW residents see their state economy heading in the wrong direction (32%) than the right one (20%).
Also heading into an election year, the Victorian Government continues to rate poorly on performance (index score of 34) with over half of Victorians rating their state economy as heading in the wrong direction (55%).
Household affordability and the policy response
Social cohesion continues to come under pressure following both the horrific events of Bondi and the attempted terror attack in Perth. In addition, cost of living also has the potential to generate division with narratives around the ‘haves’ and ‘have nots’. With this in mind, it is unsurprising, yet alarming that Australians feel increasingly divided. Two in five people (41%) say we are ‘extremely’ or ‘very divided’ on key political, economic and social issues. This has increased from 27% in July 2024 and 35% in November 2025. A further 45% think we are ‘somewhat divided’, with only 7% saying we are ‘not that divided’ or ‘not at all divided’.
There has been no shortage of public focus, including in the research domain, on cost of living for an extended period. What sometimes does get a little overlooked, however, is what’s predominantly causing the stress. JWS Research therefore asked survey participants to select the five most stressful cost of living pressures in their experience and then analysed the data.
Food and groceries is the number one item causing cost of living stress for Australians. Two in three rate it as one of the top-five cost of living pressures that makes them most stressed. This positions the shopping trolley well above electricity (48%), health and medical costs (including insurance) (42%), home and car insurance (40%) and fuel (32%). Home mortgage repayments (29%) and rent (24%) are just outside the top-five pressures, but jump to second place if combined into a single item i.e. 50% say housing is one of the most stressful cost of living pressures they face.
Food and groceries is a higher cause of stress than average (78% versus 65%) among those who rank cost of living as the number one issue the Australian Government should focus on, which reinforces the central role it has on affordability pressures. It is also a higher cause of stress for One Nation voters (76%), non-graduates (73%), those on annual household incomes of less than $50,000 (73%) and Queenslanders (72%). Women (71%) also typically feel the stress of food and grocery prices more than men (58%).
Another pressure that creates greater stress for women than men is health and medical costs (48% versus 35%). Age also impacts the pressures that face Australians, with those aged 55 years and over more likely than average to say home and vehicle insurance is a key stress (55% versus 40%), while those aged 18-34 over-index on rent (42% versus 24%).
Only 6% of Australians say they don’t experience cost of living pressures, rising to 14% among men over 55.
Public view is low and dimming about the policy response to economic and household affordability frustrations. This month we tested a range of statements asked previously about a series of macroeconomic considerations and it makes for some sobering reading.
Australians increasingly feel Federal Government spending is placing pressure on future generations, 65% of the population agree versus 55% in May 2024. Only one in ten Australians (10%) disagree with this statement about the sustainability of public spending levels.
There is evidence of growing concern at the role of public spending in fueling inflation (and as a result cost of living). Asked if Federal Government spending is well targeted and generally not contributing to inflation and cost of living pressures – a question we have deliberately asked in the positive given considerations of confirmation bias – only 17% of people agree with this proposition. This low number is down 10 points from 27% in May 2024. Today a majority of the community (52%) actively disagree that public spending is well targeted, compared to 34% in May 2024.
Meanwhile a majority (56%) see fighting inflation as the single most important thing the Government can do to ease cost of living pressures. In addition, the proportion of the population who would rather see (potential) Government surpluses used to pay down national debt (42%) continues to be higher than those who think it should be used to help Australians with the cost of living (26%). As JWS Research has emphasized in its briefings for some time now, cost of living is unquestionably the front of mind issue for most Australians. But it should not overshadow that worry about debt and public budget deficits are a real concern for a notable proportion of the population.
We asked this month about comfort with the tax system. Only 15% agree that the system is working well and not in need of substantial reform (again the proposition was phrased in the positive). This is down from 24% in May 2024. At the same time the proportion who disagree the tax system is working well has increased from 41% in 2024 to 56% in February 2026.
All this said, Australians are yet to make up their minds on whether they are willing to accept some economic pain to help fund economic reforms that improve our national budget and reduce debt. One in three continue to agree they are willing to do so (34%) while a similar proportion disagree (37%). This leaves 30% who are conflicted or unsure and who might be persuadable.
All of these insights we hope prove useful to economic and policy practitioners in the lead-up to the May budget period and beyond.
For the full report looking at household affordability and the policy response in Australia today go here.
True Issues is a research tool to assist Australian businesses to understand where their issues truly sit within the contemporary issues landscape. This poll was conducted as an online survey between 5 and 8 February 2026 among a representative national sample of 1,000 Australians aged 18+ years.
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Past releases of True Issues and all our special release research reports are available to download on our website
For the latest True Issue research tracking report capturing our February 2026 survey update and related analysis go here.
