Australia’s democracy is among the most enduring and respected in the world. It has provided the framework for our prosperity, our freedoms, and our collective identity as a nation. The peaceful transfer of power, the independence of our institutions, and the expectation that governments are accountable to the people have given Australia stability at home and credibility abroad.

Yet, as any system that depends on public trust and active participation, democracy is not fixed. It is not immune from pressure. Its strength relies on constant renewal, on leaders who listen and deliver, on institutions that act fairly and transparently, and on citizens who believe their voices matter. That is why we have created the McKinnon Index: an annual dashboard of democratic health. It measures trust in leaders, effectiveness of governments, performance of our institutions, and how and why Australians engage in politics and public debate.

The McKinnon Index offers a new way to understand these dynamics. It blends nationwide public opinion with international benchmarks and system measures to create a national gauge of democratic health. The Index does not tell governments what to do. It is not a scorecard of political ideology, party allegiance, or a list of winners and losers. Instead, tracks where trust is rising or weakening and where reform is needed. It highlights strengths worth defending, risks that require vigilance, and opportunities to renew the relationship between governments, institutions and the Australian people.

Importantly, the Index has been designed as a long-term resource, with McKinnon making an ongoing annual commitment to this work. Each year, it will track changes in perceptions, measure pressures on institutions, and provide a consistent benchmark for policy-makers, researchers, civil society and the media. Over time, it will allow us to see whether reforms are strengthening our system or leaving it vulnerable, whether communities feel more included or excluded, and whether trust is being rebuilt.

Strength and Stability
Australia’s democracy remains robust. The rule of law, the independence of the judiciary, compulsory voting, and the Australian Electoral Commission’s strong reputation are all hallmarks of a system that still delivers fairness and stability. International observers consistently place our democratic institutions among the most trusted. And the inaugural Index demonstrates the vast majority of Australians continue to see democracy as preferable to any alternative system.

These are not small achievements. In an era when many democracies around the world face threats of disinformation, polarisation and declining legitimacy, Australia’s system has shown resilience. But resilience should not be confused with immunity. Strength requires attention. Stability requires stewardship. Trust requires renewal.

Warning Signs
The inaugural McKinnon Index reveals many Australians do not feel their leaders are listening. Disengagement is especially pronounced among younger people, those living outside major cities, and those who do not feel a strong sense of belonging in Australia.

While trust in public services and independent institutions is strong, our political leaders and governments score consistently low across the nation. Satisfaction with the way democracy works is significantly lower than broad support for democracy itself. In other words, Australians value the democratic system, but many are not convinced it is delivering for them in practice.

This gap between principle and practice is clear. Three-quarters of Australians say democracy is preferable to any other form of government. Yet only just over half are satisfied with how it works today. Dissatisfaction is particularly concentrated among those with a poor sense of belonging, while higher satisfaction is found among Australians with higher education and income levels, but the divide signals that for many, democracy is not meeting lived expectations.

Social Fault Lines
Beyond institutions, the Index shows new divides are emerging in how Australians relate to politics. Almost three-quarters of Australians reject the idea that politics should prevent friendships. But among young people aged 18 to 24, one in five say they could not be friends with someone who holds different political views. Older Australians are far more likely to keep relationships across divides. This shift suggests politics is increasingly being felt as personal, with implications for social cohesion and tolerance.

Australians are also evenly split on whether debate is healthy and respectful. For a system that depends on contest of ideas, this is a warning signal that the culture of debate itself needs renewal.

Trust in Institutions
One of the more encouraging insights from the Index is that Australians retain confidence in many of our institutions, especially public servants, essential services, and the Electoral Commission. Around two-thirds are confident in election outcomes, and almost seven in ten believe elections are free and fair. But trust is uneven, with much lower confidence among First Nations Australians, remote communities, and those with weaker social connection.

This tells us trust is not abstract. It rises and falls with people’s direct experience, whether they feel government services are responsive, whether decisions are transparent, whether their voices are heard. In some states, government is widely perceived as ineffective. In others, institutions are seen as more responsive. The lesson is clear: trust must be earned through delivery.

A Shared Responsibility
The McKinnon Index makes one message clear: democracy is not a set and forget inheritance. Leaders must listen, institutions must act with integrity, the media must inform without inflaming, and citizens must engage with responsibility.

At McKinnon, we see this as part of a broader mission. If we want to change a culture that is divisive and rebuild confidence in democracy, we need to invest in the capability of those we choose to lead. That is why, alongside the Index, we invest in programs like the McKinnon Institute for Political Leadership to build the capability of our leaders and The McKinnon Prize which models what good looks like in political leadership. With the right capability and culture, policy becomes smarter, civility creates meaningful debate, institutions become stronger and public confidence begins to rebuild.

We believe Australia’s democracy will only thrive if we inspire more high-calibre, diverse talent to consider political leadership, reform the systems that shape decision-making, and equip leaders with the skills and integrity needed to deliver.

Looking Ahead
The challenges ahead, whether economic, social, or environmental, will test the capacity of our governments and the resilience of our democratic institutions. They will also test our willingness as Australians to renew the trust that underpins those institutions. The McKinnon Index cannot solve those challenges, but it can provide the clarity and evidence we need to confront them with honesty, and to measure whether we are making progress.

My hope is that this Index becomes a trusted national resource, a mirror in which we can self-appraise, a compass that points to where attention is needed. Australia’s democracy is strong, but not unshakeable. Its strength lies not only in the institutions and laws we have built, but also in the choices we make to protect and improve them.

Trust, delivery and fairness are the fuel for effective government and a cohesive society. In the end, the health of our democracy is a shared responsibility. If we want a stronger Australia, we must actively sustain the systems that hold us together. The McKinnon Index is our tool to help ensure we do just that.

Mike Baird AO
Chief Executive Officer, McKinnon