Australia Towards 2031: The demographic, consumer and behavioural trends shaping the nation

Abstract

Coined in the 1980’s, the VUCA acronym has been an apt summary of recent decades (Volatility, Uncertainty, Complexity and Ambiguity). In 2018 at the World Economic
Forum, the Prime Minister of Canada highlighted the increasing acceleration of the trends with his statement: “The pace of change has never been this fast, yet it will never be
this slow again”. Yet all of this was before the global COVID-19 pandemic further disrupted and transformed our times.
In such times, analysis of the trends and regular scans of the horizon is essential to thrive amidst the transformations.
The primary characteristic of a leader, which enables the important strengths of vision and decisiveness, is foresight.
The reason they can lead is that, having understood the trends, they are able to see things not just as they are, but as they will be.
At McCrindle we exist to empower human flourishing by equipping leaders with research-based insight. Indeed the leader with the honed characteristic of foresight, and
equipped with evidence-based insight is able to do more than just see the future, they take up the great responsibility to shape it.
We trust this report will help you understand the times, prepare you for the emerging megatrends, and equip you to lead and grow your team, community and organisation with
both humility and confidence.

Full text

The demographic, consumer
and behavioural trends
shaping the nation
Australia
towards
2031

Australia towards 2031 report is produced by:
McCrindle Research Pty Ltd
Suite 105, 29 Solent Circuit
Norwest NSW 2153
AUSTRALIA
mccrindle.com.au
info@mccrindle.com.au
1800 873 637
Authors: Mark McCrindle, Sophie Renton, Kevin Leung
Data visualisation and design: Ben Duffin
Title: Australian towards 2031: The demographic, consumer and behavioural trends shaping the nation
Publisher: McCrindle Research - mccrindle.com.au
URL: mccrindle.com.au
ISBN: 978-0-6489132-2-1
© McCrindle Research Pty Ltd 2021
This report is copyright. Fair dealing for the purpose of private study, research, criticism or review is
permitted under the Copyright Act. In addition, the Publisher grants permission to use images and content
from this report for commercial and non-commercial purposes provided proper attribution is given such as
‘Australia towards 2031 By Sophie Renton, is used by permission, McCrindle Research.

Contents
Introduction 04
Snapshot of the trends impacting the future of Australia 06
Australia’s demographic identity 08
Australians’ financial health 14
The rise of the regions 18
Liveable cities 20
Changing consumer behaviour 22
The future workforce 28
The wellbeing era 34
What does this mean for leaders? 38
How can we help? 39
Research methodology 40

Australia towards 203104
Introduction
Mark McCrindle
Coined in the 1980’s, the VUCA acronym has been an
apt summary of recent decades (Volatility, Uncertainty,
Complexity and Ambiguity). In 2018 at the World Economic
Forum, the Prime Minister of Canada highlighted the
increasing acceleration of the trends with his statement: “The
pace of change has never been this fast, yet it will never be
this slow again”. Yet all of this was before the global COVID-19
pandemic further disrupted and transformed our times.
In such times, analysis of the trends and regular scans of
the horizon is essential to thrive amidst the transformations.
The primary characteristic of a leader, which enables the
important strengths of vision and decisiveness, is foresight.
The reason they can lead is that, having understood the
trends, they are able to see things not just as they are, but as
they will be.
At McCrindle we exist to empower human flourishing by
equipping leaders with research-based insight. Indeed
the leader with the honed characteristic of foresight, and
equipped with evidence-based insight is able to do more than
just see the future, they take up the great responsibility to
shape it.
We trust this report will help you understand the times,
prepare you for the emerging megatrends, and equip you to
lead and grow your team, community and organisation with
both humility and confidence.

Australia towards 2031 05
The pace of
change has
never been this
fast, yet it will
never be this
slow again.
Justin Trudeau — World Economic Forum

Snapshot of the
trends impacting the
future of Australia
Growing linguistic
diversity
An ageing population
Future financial
outlook
Changing consumer
behaviour
The future of work is
hybrid
Median
age
1971 1983 1999 2010 2031*
27 30 35 37 39
will increase the number of digital
payments they make over the coming years
Consumers increase engagement with organisations who…
*projected
Working remotely helps workers experience The workplace environment helps workers experience
63%
of Australians believe they will
be in a better financial position
by 2031 than they are today.
79%
Work/life
balance
Strong
relationships with
colleagues
Support local
suppliers
Flexible working
hours
Strong
relationships
with leaders
Behave
ethically in
interactions
Deep thinking/
reflection
Collaboration
Sell products/services
that positively impact
the environment
61% 49%
60%
59% 47%
57%
49% 47%
52%
of workers say their ideal working
environment is hybrid
(a mix of working remotely and in the workplace)
62%
% of households where
a non-English language
is spoken
22% Australia
27% NSW
38% Sydney
56% Sydney city (suburb)

Australia towards 2031 07
Rise of the regions Rise of the Central
Lifestyle District
Return to local The wellbeing era
Only occasionally in history do massive demographic
changes combine with huge social shifts, ongoing
generational transitions and unprecedented
technological innovation so that within the span of a
decade society altogether alters. Australia is currently
in the midst of one such transformation.
References
ABS, Census of Population and Housing 2016
Mainstreet Insights, Australia’s financial habits, July 2021
McCrindle, Australians post COVID-19, 2020
Mainstreeet Insights, The soul of Australian cities, July 2021
are attracted to the idea of moving away
from the city but retaining a city job
In the future, Australians think cities will be the...
42% Epicentre of arts
and culture
Hub of main
events
Main source of
social connection
85%
66%
58%
53%
82% 75%
60%
of Australians who don’t
currently live in a regional
area have considered moving
to a regional area
83%
are making an effort to
prioritise their health and
wellbeing
76%
are making an effort to
avoid a sedentary lifestyle
% who value more now than three years ago
Shopping locally
Walkable community
Strong local community

Australia towards 203108
Australia’s
demographic
identity
200 years of growth
Prior to British arrival in 1788, the Australian Bureau of
Statistics estimates there was an Indigenous Australian
population ranging from 315,000 to over one million. Since
that time population growth has largely been driven by
overseas arrivals.
Over the past 200 years, the population of Australia has
recorded a net annual growth for all but two years (1915 and
1916 during the First World War) bringing us to a population
of more than 25 million today.
While growth has been constant for Australia, the pattern of
growth has been far from steady. In recent centuries, Australia
has increased in size rapidly.
It took until 1959 for Australia's population to reach ten
million. However, it took just 46 years (1959-2004) to add its
next ten million, and so reach a population of 20 million.
Based on current forecasts, it will take just 30 years from this
point for Australian to add its third 10 million and reach a
total population of 30 million in 2034.
POPULATION GROWTH, 1820  2020
30 mil
25 mil
20 mil
15 mil
10 mil
5 mil
0
1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 2020

Australia towards 2031 09
Migration fuelling population growth
Migration is a key driver of Australia’s population growth. Since the
turn of the millennium, net overseas migration has accounted for
57% of Australia’s population growth. In numerical form Australia
has seen growth of four million people through net overseas
migration and three million through natural increase.
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Natural change Net overseas migration
POPULATION CHANGE, 1925  2020
1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

Australia towards 203110
The impact of closed borders on population growth towards 2031
Since the start of the COVID-19 pandemic the question has
arisen of how closing borders around Australia will impact
population growth. The demographic impact of COVID-19 has
largely been a slowdown in population growth as a result of
delayed migration, combined with a slight drop in the fertility
rate due to economic uncertainty. This will likely rebound
for a period of time before steadying to a rate of 1.62 babies
per woman. By 2031 it is likely that Australia’s population will
be 1.1 to 1.4 million people smaller than the pre-COVID-19
estimate of 30 million.1 Australia’s population, however, is still
growing with an additional 3 million Australians expected
over the next decade.
The impacts of COVID-19 will live on long after the health
pandemic has passed. In 2061, Australia’s population will
be slightly older, smaller and less culturally diverse than
it otherwise would have been. The next decades with
higher healthcare, aged care, pension and economic
stimulus will see higher costs, lower revenues and more
government deficits and debt than the pre-COVID-19
forecasts.
FERTILITY RATE, 2000  2031
2.1
2.0
1.9
1.8
1.7
1.6
1.5
1.4
1.3
2000 2005 2010 2015 2020 2025 2030
TFR Pre-COVID-19 scenario Central scenario Extended restriction scenario

Australia towards 2031 11
Growing cultural and spiritual diversity
Australia is one of the most multicultural developed nations in
the world, with twice as many residents born overseas (30%)2
as the United Kingdom (14%)3 or the United States of America
(14%)4. The diversity of culture is likely to continue growing
with a large proportion of Australia’s projected growth coming
from net overseas migration. Even though COVID-19 has seen
closed international borders which will impair Australia’s
net overseas migration until the middle of this decade, our
modelling shows that by 2030, annual migration to Australia
will be close to the pre-COVID-19 numbers.
x2
Australia has twice as many residents
born overseas as the UK and US
Australia 29%, United Kingdom 14%,
United States of America 14%
As a result of shifting migration patterns from Europe to Asia
and Africa, there has been an increase in Australia’s religious
diversity despite the overall decline in religious affiliation
(no-religion 30% 2016 cf. 19% 2006). The most recent Census
data shows that 2.6% of Australians identify with Islam, 2.4%
with Buddhism and 3.2% with other religions.
Increasing linguistic diversity
With three in ten Australians born overseas (30%) and a large
proportion of Australia’s growth coming from net overseas
migration, an increasing number of Australians are using a
non-English language in their home. Across Australia just
over one in five (22%) households speak a language other
than English in their home. What is of note, however, is the
growing linguistic diversity of the capital cities. In New South
Wales, for example, more than one in four households speak a
language other than English in their homes (27%). This rises to
38% for Sydney and 56% for the Sydney city state suburb2.
% OF HOUSEHOLDS WHERE A NONENGLISH
LANGUAGE IS SPOKEN
22% Australia
27% NSW
38% Sydney
56% Sydney city (suburb)
It is important to recognise the growing trend of linguistic diversity,
so that an organisation can consider its communication strategy
with customers and staff. Consider the ease with which an
individual who speaks a language other than English can engage
with your organisation.
LEADER INSIGHT

Australia towards 203112
Australia’s ageing population
Since 1971 Australia’s median age has increased by 10 years.
Just before the turn of the millenium the median age was 35
and since 2010 it has been steady at 37.2
Looking at the population pyramids below, the shape reflects
what you would expect of a pyramid. Over time, however,
Australia’s population pyramid is starting to become inverted
as the number of Australians over the age of 60 overtakes
those under the age of 18. As a result, Australia’s median age
was projected to rise and reach 39 by 2031. Considering lower
net overseas migration, however, it is likely that Australia will
reach a median age of 39, ahead of this forecast, most likely
by 2026.
Median age 1971 1983 1999 2010 2031*
Australia 27 30 35 37 39
*projected
POPULATION PYRAMIDS
100+
90
80
70
60
50
40
30
20
10
0
250,000 0 250,000 0 250,000 0 250,000
2001 2020 2031
AUSTRALIAN MEDIAN AGE, 1971  2031
Female Male

Australia towards 2031 13
Growing lifespan
A contributor to Australia’s ageing population is the growing
lifespan of Australians. In 1909, when Australia’s age pension
was introduced, life expectancy at birth was 57. Today this
exceeds 80 when averaged across males and females. Life
expectancy is projected to continue rising, albeit at a slower
rate. By the end of the decade, female life expectancy at birth
is projected to reach 86.5, while life expectancy for males is
projected to reach 83.1.
It is expected that with Australians living longer the retirement
age will continue to be pushed back. Currently the Age
Pension age is increasing at 0.5 years every two years so if it
continues at its current trajectory, in 2031 it will be 69. This,
in-part, is made possible by the knowledge economy where
people can work into their 70s. For younger generations of
Australians, it is likely they will have a longer period in the
workforce, more careers, more transitions, and more jobs
that don’t yet exist. The emerging generation, therefore,
needs to be equipped, not just in sector-specific skills, but
in transferable skills and character qualities to thrive across
multiple jobs and in a rapidly changing world.
Generations Y and Z, often referred to as the emerging
generations of workers, are now the largest generations
in our workforce. There are more employed Australians
born since 1980 than all of those born before 1980. These
younger workers will live longer, work later, transition
roles more frequently, upskill and retrain regularly and
end up having more careers than any generation in
history.
LIFE EXPECTANCY
85.0
80.9
86.5
83.1
90
89
88
87
86
85
84
83
82
81
80
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Female Male

Australia towards 203114
Australians’
financial
health
The topic of financial health is one that many Australians put
off for another day. So much so that the number one financial
regret of Australians is not prioritising their financial health
earlier in life.5
#1
The number one financial regret of
Australians is not prioritising their
financial health earlier in life
Most Australians do not have much saved up for a rainy day.
More than half of Australians (53%) have $5,000 or less in
their savings account right now. For a fifth of Australians
(22%), their financial position is even more precarious with
less than $100 in their savings account right now.
Given their limited savings, it is understandable that
Australians are reliant on earning an income for survival.
If they were to stop earning an income today and could
not refinance or take out more loans, more than half of
Australians (58%) would run out of money within 6 months.
For more than a third of Australians (36%), however, the
financial runway is much shorter, being likely to run out within
a week or so.5

Australia towards 2031 15
Are Australians financially ready for
retirement?
In light of this, just one quarter of Australians (24%)
over the age of 18 feel extremely or very financially
prepared for retirement. Positively, Australia’s oldest
residents, Builders (40%) and Baby Boomers (32%)
are the most likely to feel extremely or very financially
prepared. Generation X, however, are the least likely
to feel financially prepared at just 16%. This is notable
as the oldest of Gen X will be approaching retirement
age by 2031.
16%
Only 16% of Gen X feel
extremely/very financially
prepared for retirement
The culture around preparing for retirement is likely
to be shifting, with younger generations of Australians
highly engaged with their superannuation. More
than half of Generation Z (54%) and two in five Gen
Y (42%) check the balance of their superannuation
fund at least monthly. This compares to a third of
Gen X (33%) and Baby Boomers (31%) and one in six
Builders (17%).
The gender divide
Females are in a more precarious financial
position than males, being more likely to
have less than $100 in their savings account
(26% female cf. 17% male).5 Meanwhile,
males are more likely to feel financially
prepared for retirement, being almost twice
as likely as females to feel extremely or very
financially prepared (30% cf. 18%). Males
also have a higher engagement with their
super, being more likely to check the balance
of their superannuation at least monthly
(45% cf. 29%). For the future financial health
of Australians, it is important for leaders
and Australians to continue to take steps to
reduce this gender gap.
Likely to have less than $100 in their
savings account
26% 17%
Feel financially prepared for
retirement
18% 30%
Likely to check their superannuation
balance at least monthly
29% 45%
With a younger generation of Australians highly engaged with
their superannuation and looking to prioritise their financial health
earlier in life, how can organisations equip them to succeed?
LEADER INSIGHT

Sydney $78,900 5x $15,800 4.3x $67,300
$1,190,000 13.4x $89,000 8.8x $782,000
Melbourne $44,000 2.8x $15,800 2.3x $36,500
$908,000 10.2x $89,000 6.8x $606,000
Brisbane $45,325 2.9x $15,800 3.1x $48,308
$642,000 7.2x $89,000 4.6x $412,000
Perth $43,825 2.8x $15,800 2.3x $36,004
$546,000 6.1x $89,000 4.4x $392,000
Adelaide $39,100 2.5x $15,800 2.2x $34,334
$543,000 6.1x $89,000 4.0x $356,000
THE FADING GREAT AUSTRALIAN DREAM
House and unit prices compared to earnings four decades ago compared to today, five capital city summary*
City 1981 Median house
price
Median house
price to annual
earnings ratio
Average fulltime
annual earnings
(national)
Median unit
price to annual
earnings ratio
Median unit
price
2021
References
House prices: CoreLogic, 2021
Historic house prices: Abelson, 2004
Average annual earnings historic and current: ABS
LEGEND
HOUSE UNIT

Australia towards 2031 17
63%
of Australians believe they will be
in a better financial position by
2031 than they are today.
Future financial outlook
Despite the financial challenges many Australians
face, they are positive about their financial future.
More than three in five Australians (63%) believe they
will be in a better financial position by 2031 than they
are today.

The rise
of the
regions
Looking to the future, the focus on Australia’s regions is rising
with three in five Australians who don’t currently live in a
regional area (60%) having considered moving to one. In
fact, more than a third have strongly/somewhat considered it
(36%). The property data from the last year reflects this with
dwelling values in capital cities rising by 9% compared to a
15% increase for regional markets.11
60%
of Australians who don’t currently live
in a regional area have considered
moving to a regional area
Peace and quiet
A simpler lifestye
Affordability
Less traffic and commute time
Beautiful landscapes
Close to nature
The ability to live in a house, rather
than an apartment or townhouse
The ability to own more land
Access to locally grown produce
A close knit community
Allows me to live more sustainably
69%
64%
62%
52%
50%
46%
36%
36%
32%
29%
27%
WHAT DO YOU THINK ARE THE KEY
BENEFITS OF LIVING IN A REGIONAL AREA?
Please select all that apply
Key benefits of regional living
Australians see the peace and quiet (69%), a
simpler lifestyle (64%) and affordability (62%) as
the key benefits of regional living.

Australia towards 2031 19
COVID-19 a catalyst for regional
growth
With COVID-19 as the catalyst for change and
working from home the enabler, the regions are
becoming an increasingly viable option. Just over two
in five Australians (42%) are attracted to the idea of
moving away from the city but retaining a city job.
Younger Australians driving the rise of
the regions
Younger Australians are more likely than their older
counterparts to be attracted to the idea of moving
away from the city but retaining a city job (59% Gen
Z, 56% Gen Y cf. 46% Gen X, 19% Baby Boomers, 13%
Builders).
Likely due to the financial constraints of city living
and being in their family forming years, Gen Y are
also the most likely to have seriously or somewhat
considered moving to a regional area (46% cf. 39%
Gen Z, 34% Gen X, 24% Baby Boomers, 15% Builders).
Buying property has been difficult for many Gen
Y Australians who are trying to enter the property
market in their family forming years, where their
desires surpass the two-bedroom unit and extend to a
family home with a backyard. It comes as no surprise
therefore that the housing benefits are a key driver
for Gen Y to consider moving to a regional area.
Almost half of Gen Y see the ability to own more land
(48% cf. 35% Gen Z, 36% Gen X, 28% Baby Boomers,
17% Builders) and the ability to live in a house rather
than an apartment or townhouse (42% cf. 35% Gen Z,
30% Gen X, 35% Baby Boomers, 39% Builders) as key
benefits of regional living.
LEADER INSIGHT
If the shift from capital city
centricity continues to grow,
this will create a change in
demand for infrastructure,
housing, education and
services in regional areas.
To future proof your
organisation, consider if this
growing trend will impact
you.

Australia towards 203120
Liveable
cities
People and place are two key components of a city.
As society changes, the place often begins to shift
too. Central Business Districts (CBD) have largely
been the hub of cities, drawing commuters in each
day to work, and surrounding infrastructure has
been built to support this. With the societal shifts of
working from home, the decentralisation of work and
the rise of the regions, however, it is likely that cities
will look different in the future. The Central Business
Districts (CBD) may even give way to the rise of the
Central Lifestyle District (CLD).
The rise of the Central Lifestyle
District
More than four in five Australians agree that in the
future, city centres will be the epicentre of arts and
culture (85%) and the hub of main events (82%). City
centres are also likely to remain the main source of
social connection (75%), house more people than
ever before (74%) and become destination retail hubs
(74%). Over two thirds of Australians (68%) believe
city centres will increase in popularity in the future.
Younger Australians are more likely to see the CBD
shifting to a CLD. More than four in five Gen Z (86%)
and Gen Y (81%) agree city centres will become
destination retail hubs compared to seven in ten
Gen X (71%) and three in five Baby Boomers (64%)
and Builders (60%). Similarly younger generations
see the future of cities as the main source of social
connection (88% Gen Z, 82% Gen Y cf. 72% Gen X,
65% Baby Boomers, 69% Builders) and the hub of
main events (87% Gen Z, 86% Gen Y cf. 82% Gen X,
75% Baby Boomers, 77% Builders).12
THE FUTURE OF CITY CENTRES
% strongly/somewhat/slightly agree
85%
city centres will be the
epicentre of arts and culture
82%
city centres will be the hub of
main events
75%
city centres will remain
the main source of social
connection
74%
city centres will house more
people than they ever have
before
74%
city centres will become
destination retail hubs
68%
city centres will increase in
popularity

Australia towards 2031 21
The Aussie dream of a house with a
backyard continues to live on
When it comes to choosing where to live there are often three
considerations: location, the home itself and affordability.
Rarely do people find their dream home and there is often a
compromise on one of these criteria. In the next year or two,
half of Australians (50%) plan on looking for a new home to
rent or buy that incorporates more of what they value, with
more than one in five (22%) extremely/very likely to do so.viii It
is therefore important to understand what Australians value in
their home and the liveability of their area.
When it comes to their home, Australians are likely to value a
backyard (59%), detached housing (54%) and a home office
(41%) more than they did three years ago. Given they are
entering their family forming years it is understandable that
younger Australians are more likely than older Australians to
value detached housing (64% Gen Z, 64% Gen Y cf. 52% Gen
X, 45% Baby Boomers, 36% Builders) a backyard (70% Gen Z,
68% Gen Y cf. 60% Gen X, 49% Baby Boomers, 35% Builders)
and a home office (59% Gen Z, 56% Gen Y cf. 44% Gen X,
20% Baby Boomers, 6% Builders).
Gen Z are the most likely generation to value detached
housing, a backyard and a home office more than they
did three years ago.
The return to local
In recent years there has been a trend to support local,
ethical and sustainable. This is likely to continue with 66%
of Australians valuing shopping locally more than they did
three years ago. Australians are not just looking to return to
local through their shopping habits, but they also have an
increasing desire for a strong local community, with more than
half (53%) valuing this more now than three years ago. The
preference for local is likely related to the increasing desire
for walkable communities, with 58% of Australians valuing a
walkable community more now than they did three years ago.
Much of what we had pre-COVID-19 we will never see
again. From regional growth to redefined work practices,
it’s not the continuation of how things were but the start
of a whole new reality. We are not experiencing a reset
as much as a reinvention.
DO YOU VALUE THE FOLLOWING MORE OR
LESS THAN YOU DID THREE YEARS AGO?
Shopping locally
Backyard
Walkable community
Detached housing
Strong local community
Home office
66%
59%
58%
54%
53%
41%
32%
36%
38%
42%
42%
45%
VALUE MORE THE SAMEVALUE LESS
2%
5%
4%
4%
5%
14%
LEADER INSIGHT
With the return to local,
understanding and investing
into your consumer
community matters now
more than ever. Regardless
of your size how can you
create and facilitate a local
experience with consumers?

Australia towards 203122
Changing
consumer
behaviour
The last decade has seen significant shifts in consumer
behaviour. With the growth in digital stores from bricks
and mortar, the rise of personalisation and the desire for
a frictionless transactional experience, it is safe to say that
consumer expectations are rising. If organisations want to
thrive in the current market, it is more important than ever to
gain insight into today’s consumers.
Australia, a cashless society?
Almost seven in ten Australians (69%) agree Australia will be
a cashless society by 2031. The data supports this growing
trend, with the number of card payments 2.4 times what it
was just a decade ago. In 2007 69% of payments were made
in cash, while today, cash is used for just 27% of consumer
payments.6
69%
of Australians agree Australia will
be a cashless society by 2031
Younger generations driving the cashless
society
Younger Australians are more likely to agree Australia will be
a cashless society by 2031 (79% Gen Z, 77% Gen Y cf. 71%
Gen X, 55% Baby Boomers, 55% Builders). The decisions they
make today are affecting this, as younger generations are
less likely to currently carry cash in their wallet (54% Gen Z cf.
83% Builders)v and more likely to agree they will increase the
number of digital payments they make over the coming years
(92% Gen Z cf. 65% Builders).
While younger generations are driving the transition to
digital, older Australians are not being left behind. Almost two
thirds of Builders (65%, aged 76+) still expect to increase the
number of digital payments they make over the coming years.
Cash Card
2007 69% 26%
Today 27% 63%

The digital shopping experience
With the number of digital payments on the
rise it is understandable that two thirds of
Australians (66%) expect to purchase more
online than in-store in the future. Transactions
that do take place in-store, however, are
increasingly ‘tap and go’ payments. Today
more than three quarters of Australians
(76%) are comfortable making a ‘tap and go’
payment with their mobile device or other
payment enabled device. Younger Australians
are more comfortable with the integration
of digital in their lives, with nine in ten Gen
Z (89%) and Gen Y (89%) comfortable with
‘tap and go’ purchases compared to 76%
of Gen X, 60% of Baby Boomers and 56%
of Builders. This signals that ‘tap and go’
purchases are likely to continue increasing in
the future.
Younger generations value the
seamless integration of digital
purchases
The rise of the digital consumer experience
is being driven by the seamless integration
of digital into every facet of Australians
life, from the way they connect relationally,
to working and purchasing. In fact, four in
five Australians (79%) value the seamless
integration of digital purchases in their
everyday life.
Younger generations place a higher value on
the seamless integration of digital purchases
in their everyday life with more than nine in
ten Gen Y’s (91%) valuing this compared to
one in two Builders (56%) (86% Gen Z, 82%
Gen X, 64% Baby Boomers).
AUSTRALIA’S DIGITAL
CONSUMER BEHAVIOURS
79%
will increase the number of digital
payments they make over the
coming years
79%
value the seamless integration
of digital purchases in their
everyday life
76%
are comfortable making ‘tap and go’
payments with their mobile device
or other payment-enabled devices
69%
agree Australia will be a cashless
society by 2031
66%
expect to purchase more online
than in-store in the future

Australia towards 203124
With digital
purchases on
the rise how are
you creating
a frictionless
transaction
experience?
LEADER INSIGHT

Simplicity as a service is crucial to the consumer experience
The most important aspect of the buying experience for
Australians is the simplicity of the purchase (69% extremely/
very important). This is followed by the authenticity of the
brand (60%), personalisation of the experience (45%) and the
alignment of the brand values with their own (42%). Almost
two in five Australians (38%) see one click purchasing options
as extremely/very important while more than a third (34%)
value the community connected to the brand.
Younger Australians are values driven in their purchases
The areas of greatest difference between the generations highlight that younger consumers
are significantly more likely to view their values alignment with the brand, the community
connected to the brand and one click purchasing options as extremely or very important.
Gen Z
18 - 26
Baby Boomers
57 - 75
YOUNGER CONSUMERS VIEW THE FOLLOWING AS IMPORTANT
Extremely/very important
2.4x
more likely 2.0x
more likely 1.8x
more likely
Community connected
to the brand
Brand values align
with theirs
One click purchasing
options
HOW IMPORTANT ARE THE FOLLOWING TO YOU IN A BUYING EXPERIENCE?
Extremely/very important
Simplicity of purchase
Authenticity of brand
Personalisation of experience
Brand values align with mine
One click purchasing options
Community connected to the brand
69%
60%
45%
42%
38%
34%
19% 28% 25%
45%
57% 46%

Australia towards 203126
Ethical and sustainable is a priority for Australians
The focus on sustainability, environmental impact and ethical purchases
has been rising in recent years. These topics are important to Australians
with two in three (66%) seeing it as extremely/very important to reduce
their food waste, the waste from their packaging (64%) and to choose
products with a low environmental impact (51%). There is also a return
to local with 61% of Australians believing it is extremely/very important
to shop from local businesses. In addition to this, more than half of
Australians want their money to bring about social good with 51%
believing it is extremely/very important to invest their money ethically.
HOW IMPORTANT ARE THE FOLLOWING TO YOU?
% Extremely/very important
Reducing my food waste
Reducing my waste from
packaging
Shopping from local
businesses
Investing my money
ethically
Choosing products with a
low environmental impact
66%
64%
61%
51%
51%

Australia towards 2031 27
LEADER INSIGHT
With Australians increasingly focused on ethical purchases
and environmental sustainability, expectations on businesses
are rising. Australians are not afraid to support businesses
they believe are doing it right with their wallet.
Engagement rises with organisations that are focusing on
authenticity and sustainability
Australians’ actions align with their beliefs, with three in five significantly/somewhat
increasing their engagement with an organisation who supports local suppliers (60%)
or behaves ethically in their interactions (57%). One in two will significantly/somewhat
increase their engagement with organisations who sell products/services that positively
impact the environment (52%) or demonstrate authenticity in brand beliefs and behaviours
(49%). If an organisation requests personal information, this is more likely to be a barrier for
engaging, with one in five (19%) significantly/somewhat decreasing their engagement with
an organisation that requests personal information.
IF AN ORGANISATION DOES THE FOLLOWING, HOW DOES THAT AFFECT
YOUR WILLINGNESS TO PURCHASE FROM THE ORGANISATION
Significantly/somewhat increases engagement
Supports local suppliers
Behaves ethically in its
interactions
Sells products/services that
positively impact the environment
Demonstrates authenticity in
brand beliefs and behaviours
Requests personal information
60%
57%
52%
49%
18%

Australia towards 203128
The
future
workforce
With Australians living longer and working later, the workforce is
becoming increasingly generationally diverse. Today Australians
over 65 have a workforce participation rate of 13% compared to just
8% in 2006.i
Although Baby Boomers are currently more active in the workforce
for their age than those before them, the next decade will see a
changing of the guard in the workforce.
By 2031 Gen Y and Gen Z will comprise almost two thirds of the
workforce and Generation Alpha almost a tenth (8%). In this time
the youngest of the Baby Boomers will sail past 65 and ease out of
the workforce. This will leave a very significant knowledge, labour
and leadership gap for the following generations to take up.
WORKFORCE PARTICIPATION RATE BY GENERATION
2021
2026
2031
Gen Alpha Gen Z Gen Y Gen X Baby Boomers
19% 34% 29% 18%
29% 33% 28% 10%
8% 31% 31% 25% 5%

Australia towards 2031 29
Intergenerational workforce
With five generations represented in the Australian
workforce, the opportunity for intergenerational division is
ripe. As leaders it is important to understand the values and
perspectives each generation brings to harness the strengths
and be aware of the potential challenges. Positively, three
in five Australian workers (61%) believe their workplace
is extremely or very effective at creating a culture that is
inclusive of all generations. It is not just about cultures that
are inclusive, however, but cultures that value the strengths of
the different generations. More than half of Australian workers
(56%) believe their workplace is extremely or very effective at
valuing the experience and wisdom of older staff.
Younger generations are more positive about their
workplace’s effectiveness at creating a culture that is inclusive
of all generations than their older counterparts (68% Gen
Z, 63% Gen Y cf. 60% Gen X, 49% Baby Boomers). Similarly
Gen Z (65%) is more likely than other generations to believe
their workplace is extremely or very effective at valuing the
experience and wisdom of older staff (cf. 56% Gen Y, 52%
Gen X, 53% Baby Boomers).
Preparing for the intergenerational knowledge transfer
There is still work to be done in the workplace to effectively
prepare for the intergenerational knowledge transfer. Baby
Boomers have a lifetime of experience, wisdom and relational
capital that, if leaders are not careful, will simply walk out
the door as this generation approaches retirement. This
next decade is an opportunity for leaders to be intentional
about creating opportunities for the younger to learn from
the older. Currently, half of Australian workers (49%) believe
their workplace is effective at creating opportunities for older
staff to impart their wisdom and learnings to younger staff
and just 43% believe their workplace is actively preparing for
transferring knowledge between leaving or retiring staff and
other team members.
Baby Boomers particularly believe there is more that can be
done in this space with just 26% believing their workplace is
actively preparing for the knowledge transfer and 38% seeing
their workplace as extremely or very effective at creating
opportunities for older staff to impart their wisdom and
learnings to younger staff.
Voluntary turnover remain a much higher cost to
business than involuntary turnover. Even during the
pandemic-induced recession of 2020, more Australians
left their job than lost their job. We have consistently
found that many people leave jobs not because there
is an acute reason to leave, but because there is no
compelling reason to stay.
61%
believe their workplace is
extremely or very effective at
creating a culture that is inclusive
of all generations
56%
believe their workplace is
extremely or very effective at
valuing the experience and wisdom
of older staff
26%
of Baby Boomer workers believe
their workplace is actively
preparing for the intergenerational
knowledge transfer
LEADER INSIGHT
Think about what steps
you are taking today to
create an environment for
older generations to share
their wisdom and prepare
for the intergenerational
knowledge transfer.

Australia towards 203130
Wellbeing in the workplace
A third of Australians’ waking hours are spent in the
workplace and more than half of an individual’s years of life
are spent at work7. With the magnitude of time an individual
spends in the workplace, it is essential for leaders to create an
environment that helps their workers thrive.
Our research into work wellbeing found that the most
important elements of a workplace are:7
Currently, Australian workplaces are doing a reasonable
job on some of these, with more than half of Australian
workers (53%) believing their workplace is extremely or very
effective at prioritising the wellbeing of their employees. A
similar proportion (55%) see their workplace as effective
in its provision of flexible working options for staff looking
to reduce their hours from full-time to part-time. The area
of greatest growth, however, is in providing development
pathways for staff with just under half of Australian workers
(46%) believing their workplace is extremely or very effective
in this area.
72%
Work
wellbeing
65%
Relationships with
peers/colleagues
60%
Collaborative work
environment
60%
Flexible
working hours
58%
Inspiring & accessible
leadership
To find out more, visit:
workwellbeing.com.au

Australia towards 2031 31
The hybrid workplace
The experience of work has radically shifted throughout
COVID-19, with the pandemic causing the greatest
transformation to work in a century. As the global workforce
continues to adopt changes brought about by the work
from home (WFH) era, it is important to understand workers’
experiences and expectations for how they can do their best
work in the future.
When considering their ideal working conditions, three in five
Australian workers (62%) see a hybrid model as their ideal
arrangement, incorporating a mix of working from home and
the workplace. One in four (25%) want everyone working from
the workplace all the time, while just 14% see their ideal as
everyone working from home all the time.8
70%
of Australian workers say the
workplace is where they experience
meaningful and regular social
connection and community
As leaders think about the future of the workplace it is
important to understand that the workplace is so much more
than an environment where productive work is done. For
70% of Australian workers, work is the place they experience
meaningful and regular social connection and community.
This is higher than the proportion who experience connection
in their households (54%) or local neighbourhood (32%),
highlighting the significance of the workplace in building
meaningful social connections.9
THE FUTURE OF WORK WILL BE HYBRID
EVERYONE WORKING
FROM THE WORKPLACE
ALL THE TIME
EVERYONE
WORKING FROM
HOME ALL THE TIME
A HYBRID OF WORK
FROM HOME AND THE
WORKPLACE
LEADER INSIGHT
The relationships that are built in the workplace are a significant
part of many workers’ lives. In the current era of WFH it is
imperative to think about how as leaders you will facilitate
meaningful social connections in a hybrid workforce.
14%62%25%

Different work environments facilitate different experiences
With remote working growing rapidly, it is important to explore how this impacts
a worker’s experience. When asked which working environment – remote or in the
workplace – has best helped them experience different aspects of work, workers
indicate the environment differs based on the element.
For elements such as work/life balance (61%), flexible working hours (59%) and deep
thinking/reflection (49%), workers are more likely to say that the remote working
environment has best helped them experience these elements. For building strong
relationships with colleagues (49%), leaders (47%) and collaboration (47%), however,
workers are more likely to experience these in the workplace.
With the working environment impacting the experience of different elements of
work, it is important therefore that a hybrid working environment is considered
in the future of the workplace. Employing this approach allows organisations to
intentionally use the different working environment to focus on facilitating different
experiences for the worker.
WHICH WORK ENVIRONMENT REMOTE/WORKPLACE BEST HELPS YOU EXPERIENCE THE FOLLOWING?
Work/life balance
Flexible working hours
Deep thinking/reflection
Productivity
Idea generation and
innovation
Connection to vision of
organisation
Building strong relationships
with leaders
Professional development
Building strong relationships
with colleagues
Collaboration
61%
59%
49%
43%
39%
29%
26%
23%
29%
29%
29%
37%
MORE REMOTELY THE SAME
14%
19%
22%
28%
32%
34%
28%
27%
27%
26%
25%
33%
25%
28%
47%
40%
49%
47%
MORE IN THE WORKPLACE
Australian workers who have worked both remotely & in the workplace

Australia towards 2031 33
Expectations of the future workforce
Members of the emerging workforce are part of
a values-driven generation. As Gen Z students
think about their future career, the most important
(extremely/very) considerations for them are that
they have purpose and meaning in their work (72%)
followed by an alignment between their work and
their core values (68%).
In keeping with their social and mobile outlook on
life, today’s students believe it is important that
their future career involves a workplace where there
is a community of strong social connections (65%)
alongside workplace flexibility (64%).
The desire to live a life of impact is strong, with
almost two in three students (64%) believing it is
extremely/very important that the work they do has a
positive impact on the world around them.10
By 2031, 31% of the workforce will be Gen Z workers
who bring a unique set of values and perspectives to
their work. As a generation they are looking to have a
work experience that is for purpose, aligns with their
values and has a positive impact on the world around
them. The trends that are already being seen in Gen
Z are likely to continue in Gen Alpha, signalling an
opportunity for leaders to take steps now to prepare
their organisation for the workforce of the future.
The next generation aren’t looking for a job as
much as an opportunity. To some work is simply
employment. But to many more it’s a lifeline to
social interaction, purpose, contribution, identity
and a place of belonging.
KEY DESIRES FOR FUTURE CAREERS
72%
having purpose and
meaning in their work
68%
work aligns with their
core values
65%
a workplace that is a
community of strong
social connections
64%
work they do has a
positive impact on the
world around them
64%
workplace flexibility
Extremely/very important
1
2
3
4
5

83%
of Australians make an effort
to prioritise their health and
wellbeing
Australia towards 203134
The
wellbeing
era
As Australians live longer and have a desire for their
extended lifespan to be one of health and freedom, health
and wellbeing becomes an increasingly important topic for
consideration for health providers and Australians themselves.
Particularly when you consider that the obesity rate is higher
in Australia than many other OECD countries.13 Looking to the
future it is important to explore how Australians can ensure
they are setting themselves up well to live longer and lead
healthier lives. Positively, more than four in five Australians
(83%) are already making an effort to prioritise their health
and wellbeing.
WORLDWIDE GOOGLE SEARCHES FOR 'HEALTH AND WELLBEING' SINCE 2004
100
90
80
70
60
50
40
30
20
10
0
2004 2006 2008 2010 2012 2014 2016 2018 2020

Australia towards 2031 35
The healthy food focus
Food is a key component of a healthy lifestyle and,
positively, 80% of Australians say they prioritise
making healthy food choices. The key reasons
Australians stop making healthy food choices,
however, are the time it takes to prepare it (35%), that
fresh produce costs more than packaged food (30%)
and not knowing what to prepare (27%). For almost
one in five Australians (19%) a key barrier to making
healthy food choices is they have to prepare food for
fussy eaters.
WHAT STOPS YOU MAKING HEALTHY FOOD CHOICES?
The time it takes to prepare it
Fresh produce costs more than
packaged food
Not knowing what to prepare
I have to prepare food for fussy
eaters
I don't feel confident in the kitchen
I do not have the equipment to
prepare healthy meals
I don't like vegetables
35%
30%
27%
19%
15%
9%
9%

Australia towards 203136
Fear of sedentary lifestyle
Australians are aware of the benefits of an active
lifestyle with more than three in four (76%) making an
effort to avoid a sedentary lifestyle. Australians are
not just trying to avoid a sedentary lifestyle but two
thirds (64%) believe they are doing enough exercise
to stay healthy. Three in five Australians (61%),
however, are still worried their life is too sedentary.
The health focus differs by generation
The fears younger Australians face are different
to their older counterparts. Younger Australians
are more likely than their older counterparts to be
worried their lifestyle is too sedentary (79% Gen Z,
70% Gen Y cf. 60% Gen X, 45% Baby Boomers, 47%
Builders). Younger Australians are also more likely to
agree that social media is having a negative impact
on their mental health (73% Gen Z, 69% Gen Y cf.
48% Gen X, 27% Baby Boomers, 25% Builders).
Builders, however, are the most likely to be prioritising
making healthy food choices (90% cf. 73% Gen Z,
76% Gen Y, 83% Gen X, 82% Baby Boomers).
TO WHAT EXTENT DO YOU AGREE WITH
THE FOLLOWING STATEMENTS?
% strongly/somewhat/slightly agree
I make an effort to prioritise my health and wellbeing
I prioritise making healthy food choices
I make an effort to avoid a sedentary lifestyle
I believe I am doing enough exercise to stay healthy
I am worried my lifestyle is too sedentary
Social media is having a negative impact on my mental health
83%
80%
76%
64%
61%
51%

Australia towards 2031 37
From demographic
shifts to technological
advancements the future
of work is changing.
Yet our research shows
that the health, stress, and
relational connection of
workers — wellbeing —
is the essential factor that
will most impact and define
the future of work.

Australia towards 203138
What does
this mean
for leaders?
The world as we know it is changing. The demographic,
consumer and attitudinal trends all combine to create a world
that is different from the one we have known before. While
innovation and change occur on a societal scale, within your
industry there will still be smaller waves of innovation. It has
been said that the only thing constant in life is change. As
leaders, therefore, it is imperative that you equip yourself with
the broader societal trends but also the nuanced trends that
impact your industry and sphere of influence.
We love partnering with great people to help you stop
guessing and get clarity on your context. If, while you have
been reading this report, you have been thinking, ‘I love
the big picture but there is more I need to understand
about my context’, we would love to assist. Whether that is
understanding your customers, finding growth areas for your
business or gaining insight into the trends that shape our
lives, we would love to partner with you so that you can have
confidence for your next step.
The success of a
leader is measured
not by what they
achieve in their
tenure, but by what
they set in motion.

How can
we help?
Why McCrindle?
For more than a decade, McCrindle has been trusted to
provide a clearer picture for business leaders. You want to
grow, we get that. To find growth markets you need the latest
demographic trends, social analysis and consumer insights
to guide your strategies and growth plans. At virtual training
days, conferences and team sessions we make the unknown
known and bring clarity in complex times through visually
engaging, inspiring presentations and workshops.
Book an insights update for your
organisation
Getting started in discovering a clearer picture for your
strategic decision Our advisory team equip leaders with
actionable insights through keynotes, workshops and
consulting sessions. We rely on our in-house demographers,
researchers, strategists and designers to bring the very best
to our presentations. We are a highly intelligent, friendly team
that would love to work with you, just as much as we love to
work with data!
Let’s discover the future together
Getting started is simple. Head to mccrindlespeakers.com.au
to learn about our frequently requested topics and variety of
speakers. Or get in touch with our team at info@mccrindle.
com.au to book a session with one of our professional
speakers.
The decision to present virtually was
made a few days before the event,
and Mark's virtual presentation was
insightful and engaging.
— Bundaberg Regional Council
Even in a virtual environment we could
still feel Ashley's energy, laugh at her
jokes and soak up the data.
— Future of Leadership

Australia towards 203140
Research
methodology
Australia towards 2031 is based on quantitative research, as
well as scoping research and data analytics.
A nationally representative online survey of Australians aged
18+ was conducted to gain insights that form much of this
report. The survey was in field from the 18th to the 22nd of
June 2021. Throughout this report, these respondents are
referred to as ‘Australians’.
Future predictions utilise existing data that has been
extrapolated using internal projections.
Graphs and rounding
Data labels on the graphs in this report have been rounded
and may, therefore, sum to 99% or 101%. Any calculations
where two data points have been added are based on raw
data (not the rounded data labels on the graph) which have
then been rounded once combined.
References
1. Australian Government Centre for Population projections
2. ABS, Census of Population and Housing 2016
3. The Migration Observatory, University of Oxford, Migrants in the UK: An overview, October 2019
4. Pew Research Centre, Immigrant share in U.S. nears record high but remains below that of many other countries, January 2019
5. Mainstreet Insights, Australia’s financial habits, July 2021
6. Reserve Bank of Australia, Consumer Payment Behaviour in Australia: Evidence from the 2019 Consumer Payments Survey,
James Caddy, Luc Delaney and Chay Fisher, 2020
7. Work Wellbeing, Leading thriving teams in rapidly changing times, Mark McCrindle and Ashley Fell 2020
8. McCrindle, Australians post COVID-19, 2020
9. Mainstreet Insights, Workplace and the future, May 2021
10. McCrindle, The future of Education: Insights into today’s students and their future expectations, 2021
11. Core logic, Hedonic Home Value Index, June 2021
12. Mainstreeet Insights, The soul of Australian cities, July 2021
13. Australian Institute of Health and Welfare, Australia’s health 2020 data insights, 2020

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