Gross National Happiness: A Fresh Measure for Australia’s Prosperity

Australians are used to hearing about GDP growth, unemployment rates, and interest rate moves as benchmarks for the nation’s prosperity. But in 2025, a new conversation is gaining ground: should we be measuring our success by Gross National Happiness (GNH) instead of just economic output?

What is Gross National Happiness?

Gross National Happiness was first pioneered by Bhutan in the 1970s as a holistic approach to measuring a country’s progress. Instead of focusing solely on economic performance, GNH considers factors like psychological wellbeing, health, education, cultural diversity, time use, and good governance. The idea is simple: a nation is truly prosperous when its people are happy, healthy, and connected—not just financially well-off.

• Psychological wellbeing: Are people satisfied with their lives and relationships?

• Health: How accessible and effective are healthcare systems?

• Community vitality: Do people feel a sense of belonging?

• Environmental sustainability: Is economic growth harming or helping the natural world?

In 2025, as Australia faces new economic and social pressures, these questions are more relevant than ever.

Australia’s Economic Landscape in 2025: Beyond GDP

The Australian economy in 2025 is facing a unique set of challenges and opportunities. With inflation moderating from the highs of the early 2020s and the Reserve Bank of Australia holding the cash rate steady, there’s growing public interest in how economic policy affects quality of life—not just the bottom line.

Recent policy shifts reflect this trend. For example, the 2025 Federal Budget included a $2.5 billion investment in mental health services, recognising that economic security is closely tied to wellbeing. State governments are launching pilot programs to measure community satisfaction and environmental health, integrating these indicators into regional development plans.

Some forward-thinking councils, such as in Victoria and Queensland, are trialling local GNH-inspired dashboards, tracking metrics like green space access, work-life balance, and civic participation alongside jobs growth and housing affordability.

What Would an Australian GNH Index Look Like?

Building an Australian GNH index means translating the Bhutanese model to suit local values and challenges. Here’s what an Australian version might include:

• Work-life balance: Data on commute times, flexible working, and leisure hours

• Affordability: Housing and essential goods costs relative to income

• Environmental health: Air and water quality, biodiversity protection, and renewable energy adoption

• Social connection: Rates of volunteering, community group participation, and neighbourhood trust

• Mental health: Access to services, reported stress and anxiety levels, and life satisfaction surveys

By 2025, some of these metrics are already being collected by the Australian Bureau of Statistics (ABS) and state governments, making a national GNH index more feasible than ever.

The Financial Implications: Why GNH Matters for Households and Investors

Adopting a GNH lens could reshape how Australians think about money, investment, and policy:

• Policy decisions: Governments may prioritise funding for mental health, public transport, and environmental restoration over short-term GDP growth.

• Superannuation and ESG investing: Funds could increasingly focus on companies that deliver positive social and environmental outcomes, not just profit.

• Personal finance: Australians might measure their own prosperity in terms of happiness, time with family, and community engagement, not just net worth.

With the global ESG (Environmental, Social, Governance) movement gaining momentum and investors demanding more transparency on non-financial performance, GNH is moving from a fringe idea to a serious economic consideration—even for Australia’s major banks and super funds.

Conclusion: A Happier, Healthier Australia?

Gross National Happiness challenges the idea that bigger is always better when it comes to the economy. As Australia adapts to the realities of 2025—climate change, mental health crises, and a shifting job market—GNH offers a broader, more human-centred framework for progress. Whether it becomes an official national metric or simply inspires better policy, the GNH conversation is set to reshape what it means to thrive in Australia.