Insights

Wellbeing-focused public policy the key to thriving communities

Posted November 05, 2025

Author(s):

Michelle Tjondro

Experts in this area:

Yuan Deng

Sectors:

Types:

Local government

SGS Economics and Planning Michelle Tjondrocolour

A tale of two nations is playing out in the wellbeing of city-dwelling Australians compared to those in regional and rural areas, and as far as Australia’s long-standing reputation as the ‘Lucky Country’ goes, that very much depends on where you live.

SGS Economics and Planning has published its annual Cities and Regions Wellbeing Index, providing crucial information about the quality of people’s lives across seven key areas including economy, income, employment, health, housing, community and environment in more than 500 local government areas (LGAs).

The report captures more nuanced data on societal progress than traditional economic metrics like Gross Domestic Product, and highlight whether prosperity is evenly distributed and if people are living happy, healthy sustainable lives.

This year’s report tells a familiar story. In short, Australians with addresses in or close to capital cities – particularly Greater Sydney and Melbourne – are outperforming their regional counterparts across many wellbeing indicators.

For example, let’s look at the health indicators. Regional Australia has, on average, a higher number of GP services per capita despite having fewer GP services overall and a more dispersed population base. However, population health in urban areas is consistently higher, with a lower share of residents living with multiple long-term health conditions.

Chronic illness is a significant constraint to quality of life and often contributes to other stressors such as financial security and the ability to manage employment and study. By contrast, longer life expectancy can lead to greater opportunities for personal growth and fulfilment, as well as more varied options for workforce participation and activities including volunteering.

Regional Australia’s poorer wellbeing outcomes overall, linked to the Index’s health indicators, suggest an urgent need to address a range of challenges to healthcare access, including the availability of transport, clinic opening hours, the costs of care and options for continuity of care.

SGS Economics and Planning CRWI dimensions

Looking at our regional economies more broadly, this year’s Index highlights significant structural economic changes that have been unfolding over the past decade. The Index shows that some regions, including in Tasmania, Victoria and Greater Darwin, have experienced much greater structural change than others.

Some of the largest shifts have occurred in Tasmania. There has been a 20 percentage point decline in the share of traditional industrial sectors in Greater Hobart’s economy over the last 10 years. Traditional industry includes agriculture, forestry and fishing, mining, manufacturing, electricity gas water and waste services.

The opposite is true in Western Australia, whose traditional industries, particularly mining, transport and warehousing, have grown in their share of the regional economy during the same period.

These structural changes are important because they affect jobs, skills and qualification requirements – all elements that impact the quality of life for the people living in those communities.

A detailed picture of how communities across Australia are faring is key to effective public policy and action.

Far too often, we see broad-brush solutions implemented that fail to address the gaps in wellbeing at a local level. As a nation, we need to dig deeper into the data and open the door to discussions that inform how we prioritise investment, shape socio-economic outcomes and level the playing field across our cities and regions when it comes to wellbeing.

This column was originally published on Inside Local Government.