'Wellness' budget still a work in progress

"The things that we care care about - health and education, inequality and democracy - have been thought about in the past when compiling budgets," leading economist Danielle Wood says.

"(But) what this does is make that very explicit and hopefully allows us to track progress over time, to see if we are getting better health and education outcomes or helping those most in need."

The 2022/23 budget begins an Australia-wide consultation on how to look beyond the budget bottom line and track the living conditions and aspirations of people.

The idea is that considering financial prosperity alone doesn't measure the quality of our lives.

New wellbeing and quality of life indicators will build a database over time, alongside other traditional budget metrics on economic growth, inflation and unemployment.

"It's absolutely a step forward," says ANZ chief economist Richard Yetsenga.

"We should try to see the economy less as bits of data and more as about people."

Treasury plans to use an international framework developed by the Organisation for Economic Co-operation and Development (OECD), a grouping of major economies.

"They're picking up on work that's already been done internationally and using that as a basis - it makes a lot of sense," Ms Wood says.

"It's not revolutionary ... It means those things are front and centre when difficult decisions are being made."

The Measuring What Matters Statement with next year's budget will use the OECD criteria to look beyond the usual economic metrics at health, cultural diversity, feeling safe and respected, and having opportunities.

Taking a longer-term view, the new way of thinking considers which social and economic policies work.

The 2022 World Happiness Report has Australia in 12th place out of more than 150 countries - two slots behind New Zealand which already has a wellbeing budget.

The United Nations' sustainable development experts gauge income, life expectancy, generosity, freedom, trust and social support in a report that's been tracking happiness for 10 years.

Elsewhere, the federal opposition's view is a conventional one.

"The best way to improve the wellbeing of Australians is to strengthen the economy, contain inflation and help struggling families make ends meet," shadow treasurer Angus Taylor says.

"That's what the treasurer should be focused on."

He says the single most important thing any government can do to help ease inflationary pressures is strengthen their budget position.

Last Tuesday's budget, he says, was "heavy on partisan politics but lacking an economic plan".

Monash University politics lecturer Blair Williams points out investment in wellbeing and health, along with women's safety and economic equality, was a campaign promise.

"The October 2022 budget marks a departure from the 'blokier' budgets of recent years," she says.

A leading mental health institute welcomed Treasurer Jim Chalmers new indicators, as well as $630 million in hard cash for disaster preparedness and resilience.

Black Dog Institute head Sam Harvey says tracking wellbeing shows Australians that what matters to them - health services, education standards and the environment - is also important to the government.

"Lack of access to safe housing, employment, financial security and healthcare are risk factors for mental illness and suicide," he says.

Ensuring better preparedness for emergencies will help lessen the devastating toll from droughts, fires, floods and cyclones.

"We know severe psychological distress is common after natural disasters and there is a higher likelihood of PTSD for individuals living in communities struck multiple times by these events," Prof Harvey says.

The budget also funds a mental health check tool for schools because struggles often begin in childhood but many are not detected or treated until later in life, affecting social and financial wellbeing.

John Buchanan, co-director of the Mental Wealth Initiative at the University of Sydney, says it is widely recognised that economic growth is a highly problematic indicator of progress.

"This is an important initiative but not without its limitations," Professor Buchanan says.

"We don't need just more indicators, we need a better way of measuring income and wealth - especially our mental wealth."

Mental wealth refers to the mix of social, emotional and psychological factors that can affect thinking and feelings, and influence how people handle stress and difficult situations at home and work.

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