(2026) Why Friendly, Neighbourly Connection Matters

Published as slightly edited online under the heading ‘Big government can’t end loneliness blight’ in the Australian Financial Review 0n 2 August 2026, https://www.afr.com/life-and-luxury/health-and-wellness/big-government-can-t-end-loneliness-blight-20260802-p60kmd, and in print on 4 August 2026, p. 29.

Image published with the online version with the caption: Loneliness costs the Australian taxpayer about $2.5 billion annually
in health utilisation costs. Photo credit: Tribune

Australians think we are the friendliest people on earth. The truth is most of us are strangers to each other. Loneliness, the blight of isolation, is more common than ever. The Beatle’s ‘Eleanor Rigby’ song lyrics ask “All the lonely people/Where do they all come from?” There is an answer. They are our neighbours, often the people we walk pass every day, who rarely hear a “good morning” salutation from us.

This matters socially, culturally, and economically. Research and community initiatives are worth noticing. There are fresh insights on the problems and answers.

On the economics and societal challenges, according to the Bankwest Curtin Economics Centre Stronger Together: Loneliness and Social Connectedness 2021 report, loneliness costs the Australian taxpayer annually around $2.5 billion in health utilisation costs (i.e., more frequent visits to hospital and to the GP).

Now Professors Michelle Lim and Ben Smith of the University of Sydney have just released the confronting 2026 The State of the Nation report on ‘Understanding and Rebuilding Social Connection in Australia’.

This warrants consideration of community ideas that might moderate or mitigate against the costs to individuals and society.

The State of the Nation authors observe: “When… healthy social habits erode, the consequences for individuals, families, and communities are profound. Our risk of chronic disease, serious mental illness and premature death increases, and the sense of connection and belonging to people and places disappears.” Social cohesion, the ‘S’ in ESG – the social – needs to shift from abstract to the practical.

The 2026 study sampled 4,001 Australians aged 12-95 years old across the nation. Data was weighted by age, gender, and region to reflect the latest Australian Bureau Statistics (ABS) population estimates.

Measuring ‘Social Disconnection Loneliness and Social Isolation’ was measured according to the University of University of California Los Angeles Loneliness Scale. Without delving the methodologies, they found loneliness and social isolation is prevalent across all the lifespan.

Interestingly, 18-25-year-olds are the loneliest (18%) but the least socially isolated; 45-54-year-olds are also the loneliest and socially isolated (28%). Those aged 65-74 are also socially isolated.

Social disconnection (loneliness AND/OR social isolation), 51% (1 in 2) people met criteria for either loneliness and/or social isolation. And not much has changed since their last survey in 2023. This is alarming. Social disconnection is bad for health and well-being.

The report focused on solutions and prosocial actions. Tellingly, socially disconnected people (because of loneliness, social isolation, or both) have a lower tendency to do things for the benefit of others – such as showing kindness, offering help – compared with those who are socially connected

Living in a cohesive, neighbourly community where people can trust and help each other can reduce the risk of loneliness and social isolation. This is easier said than done. But regularly chatting with neighbours reduces the risk of loneliness and social isolation by 88%, social isolation by 66%, and loneliness by 56%.

What is needed are accessible spaces (infrastructure, activities and aligned initiatives) that bring people together to facilitate healthy social connection.

Les Murray’s poem ‘Faster-than-light Loneliness’ states: “our thought balloons are coated invisible/ no one there sees us and we can’t get out to be real or present.” Loneliness is no mere personal matter: it is a societal problem. It is about the ecosystem of communities, schools, workplaces, business, and policies all work together in order to make a difference in people’s lives.

The research shows family cohesion, community relationships, and volunteering all help reduce risk. But more generally, high pressure workplaces, stress, financial strain can work against individuals’ ability to dedicate the time necessary to nurture their relationships. 

Which calls attention to examples of community initiatives to beat the loneliness epidemic.

For example, the Little Big Foundation, a not-for-profit at Summer Hill in Sydney’s inner-west, is a pioneer of building social infrastructure and spaces with active curation. There are now 60-90 events held per month in a two-story heritage building. There are 0ver 60 tenant and wider community volunteers, organising their own events, including a monthly community market, not just for the immediate residents, but for a two km surrounding catchment area. A Director is employed full-time to make this work.

Yet nothing in the government urban planning system encourages or facilitates such initiatives, especially on an on-going (recurrent) basis. Even where developers ‘donate’ community spaces and/or assign them to local councils, they usually fail. This is because there’s no-one who manages or leads. It is not seen as ‘community space’.

It is one thing to design for human connectivity ‘in-theory’. It is quite another to walk through a physical space built for this purpose and see how it actually works day-to-day, to experience the quirks and practice of bringing people together.

It is sensible to focus locally, on what works where local residents and businesses grasp and get a handle on the issues within their community and together improve it. Tapping the volunteer spirit in Australians is needed. This is not a Big Government challenge – though government support and positive regulation can assist. It is a challenge for all of us. Loneliness, what it means and the damage it causes, and facilitating a healthier community in response, are challenges which no longer should be buried away in silence. 

The article mentioned that Dr Michael Easson AM is Executive Chair of EG Funds management, which supports the Little Big Foundation. Loneliness Awareness Week in Australia runs from 3-9 August, with the theme ‘Make Room for Connection’.

How the article appeared in print: