This paper uses two nationally representative datasets to examine the relationship between income inequality and democratic resilience in Australia, focusing on how perceptions of economic disparity influence public satisfaction with democratic institutions. The study reveals a significant association between the perception of unfair income distribution and dissatisfaction with democracy. 

While income inequality in Australia has not markedly increased, the research highlights that public concern over income gaps persists, influencing attitudes towards the government's role in addressing these disparities. The analysis demonstrates that demographic factors, such as age, education, and income, are important predictors of democratic satisfaction, but that perceptions of income inequality and beliefs about the government's responsibility in reducing these gaps play a crucial role. 

Findings

• There is a very strong relationship between views on income inequality in Australia and views on democracy: only 51.2% of Australians who think the distribution of income is very unfair are satisfied or very satisfied with democracy.
• Those who support an expansive role for the government tend to be more dissatisfied with how democracy functions.
• This dissatisfaction is particularly pronounced among younger Australians, women, and those with lower incomes. 

Key recommendations

• Expand the coverage of surveys on these topics to capture a more diverse range of opinions, particularly from underrepresented groups such as younger Australians and lower-income households. 
• Increase efforts to reduce inequality and ensure those efforts are communicated to the public.
• Improve transparency and communication regarding efforts to reduce income inequality.