Is social cohesion in Australia under threat?

During the senate inquiry on 10 April 2024, Mr Mike Burges, the ASIO boss, expressed concern about the rise in activities of right-wing extremists and the potential for it to incite a race war in Australia. This is the third time in less than a year that the ASIO boss has highlighted the vulnerability of social cohesion in the country. The previous instances were after the Gaza-Israel war in October last year and his recent disclosure about the significant and ongoing threat of foreign interference, posing a security risk to Australia’s social cohesion.

For a long time, multiculturalism has been praised for its contribution to fostering and preserving social cohesion in Australia. It has played a crucial role in promoting trust, national pride, and support for ethnic diversity.

During the COVID-19 pandemic, our society’s unity and strength were put to the test and proved to be resilient, which has fostered a feeling of triumph and hope among the people.

Nevertheless, this sense of triumph appears to be fleeting, overshadowed by various ongoing challenges in different domains such as housing, migration, and foreign interference. The crucial point is that all these seem to be interconnected to have an impact on the social cohesion that concerns us deeply.

Let us start with the costs of living as one of the crucial denominators for social cohesion. 

The rising cost of living in Australia has become a major issue, particularly due to recent inflation trends, reaching its peak at 7.8% last year and remaining high, averaging around 7% for the year up until March. This has resulted in increased prices across various sectors, including food, travel, medical services, and utilities.

One area that is particularly affected by the high living costs is the housing market. Australia is currently facing a significant housing crisis, characterized by record low vacancy rates, declining building approvals, worsening rental affordability, and rising construction costs. Consequently, numerous individuals find themselves floating above the inundated water on the verge of experiencing homelessness, while the aspiration of possessing a new residence is progressively slipping away for younger cohorts. Amid this tumultuous circumstance, countless international students are also grappling with the challenge of finding rental accommodations.

Australia has witnessed a significant increase in migrant arrivals, with numbers rising by 73 percent from 427,000 to 737,000 in the past year. This surge in migration is happening simultaneously with the housing crisis. Some argue that there is a direct correlation between these two issues, suggesting that migration is exacerbating the housing crisis.

On the other hand, there is a counterargument that migrants have historically played a positive role in stimulating the Australian economy, which has been sluggish, aging, and relatively relaxed. This perspective highlights the potential benefits that migrants bring to the country.

In general, the discussion and debate surrounding the cost of living in Australia, along with the housing crisis and the continuous influx of migrants, have gained significant attention. It is widely believed that these share a correlated or potentially causal relationship, although this connection has not been fully clear at this point.

Nevertheless, regardless of the nature of this connection, it extends beyond Australia. Other Western countries, particularly English-speaking nations, also face comparable difficulties. For example, the United States is dealing with similar challenges as Canada and the United Kingdom, including substantial levels of unregulated immigration, concerns about housing and rental availability and affordability, and steadily rising living expenses with the absence of vigorous and effective government intervention.

Alongside these challenges, these nations are also experiencing increased racial tensions and sporadic conflicts, which can, partly, be attributed to the influx of millions of asylum seekers into the United States and the UK without undergoing any vetting process. Some of these individuals in the US, in particular, were suspected of having a criminal background, which has left it susceptible to potential terrorist attacks at any given moment. The United Kingdom shares similar concerns as well.