Australia’s economy has delivered prosperity for some, but left many behind. The divides in housing, health, income and opportunity are widening — and they’re not inevitable. They’re the result of decisions, shaped by values and power.
It doesn’t have to be this way.
Across Australia and around the world, communities are already building alternatives — from cooperative energy projects and regenerative food systems to new legal frameworks and circular design. These examples show that change is not only possible: it’s already happening.
In this one-hour session, The Next Economy CEO Lizzie Webb will be joined by lead author Katherine Trebeck to unpack insights from The Economy We Could Have — a new paper that looks under the bonnet of the Australian economy and reveals how we can move beyond isolated ‘Lego wins’ toward a wellbeing economy that prioritises dignity, fairness, connection and ecological care.
📅 Date: Thursday, 12pm AEST (1PM AEDT), 4 December 2025
Australia’s economy looks strong on the surface, but behind the averages lie deep divides in housing, work, health and opportunity. Our new paper, The Economy We Could Have, asks what our economy is really designed to do, who it is working for, and how it can support people’s wellbeing.
Australia is at a pivotal moment. While headline statistics suggest strong performance, looking under the bonnet of these numbers reveals widening divides in housing, health, income, and opportunity. Rising inequality and climate disruption demand a closer look at our economic system: what is it designed to do – and who benefits?
The Economy We Could Have explores how Australia’s economic story has shifted over the decades, the divides created along the way, and the alternatives already being built. It sets out practical steps for governments, enterprises and communities to move beyond isolated “Lego wins” and instead embed a wellbeing economy – one that puts dignity, fairness, connection and ecological care at its centre.
As lead author, Katherine Trebeck, puts it:
Transformational change is possible. Australia has done it before – from Medicare to minimum wages – and we can do it again.
The challenge
The paper traces Australia’s shift from predistribution – fair wages and public investment – to a model marked by precariousness, asset accumulation, and financial advantage for a few. It also highlights how system-compliant fixes and short-term crisis responses can stall deeper progress.
One in seven Australians live in poverty. Many face insecure work, unaffordable homes and stretched services that respond to crisis rather than prevent it. These outcomes are not inevitable. They are the result of decisions – shaped by values and power – that have concentrated advantage for some and shifted risks onto others.
The alternatives
The good news that is change is possible. The economy is a human-made system, and it can be redesigned. Across the country, communities are already showing what that momentum for change is growing. Australians are increasingly dissatisfied with the status quo and open to rethinking economic priorities.
One promising framework is the wellbeing economy, which according to the Wellbeing Economy Alliance can deliver the following needs:
There are plenty of examples of these goals already being delivered in practice:
Earthworker Cooperative (Latrobe Valley, VIC)
Australia’s first worker-owned factory, producing solar hot water systems to serve its worker-owners.
Food Connect Shed (Brisbane, QLD):
A cooperative food enterprise owned by 500+ ‘careholders’, rooted in equity and regeneration.
Marlinja Power Project (NT):
Community-installed solar panels and battery storage enabling near energy self-sufficiency – an example of climate resilience.
Governments are beginning to respond. The Federal Government’s Measuring What Matters statement is expanding how national success is defined, incorporating indicators for health, sustainability, and social cohesion. In Victoria, the Early Intervention Investment Framework is embedding preventative health and social approaches into budget decisions, valuing long-term wellbeing over short-term fixes.
Australia’s future depends on whether we can move beyond piecemeal reforms to embrace systemic change. By learning from community-led initiatives and adopting frameworks like the wellbeing economy, we can build a more inclusive, resilient, and caring society – one that works for everyone.
Regional Councils play a critical role in ensuring renewable energy development is fair, well managed and delivers lasting local value. Drawing on our work with regions, The Next Economy is mapping how Councils contribute at each stage of the development pathway to secure long-term community benefits.
Lisa Lumsden, Senior Project Officer facilitating group discussion with local government leaders at the Regional Leaders Summit, Newcastle August 2025.
We know our place really well and we put our communities at the forefront of our decisions
Council participant at the inaugural Regional Leaders Summit, August 2025, Newcastle
Councils across Australia are being pragmatic and strategic about renewable energy development in their region – focussing on what they can do to make the most of the situation, to minimise impacts and leverage the potential for the long-term local outcomes they want.
So, what is involved in achieving that?
In short – A lot.
Drawing on work in regions such as Uralla and Hay as well as recent workshops at the Regional Leaders Summit and Gippsland New Energy Conference, The Next Economy has developed insights into the activities Councils are implementing to improve the outcomes of renewable energy development and create shared strategic value across Australia.
In mapping these over the last few months the following two groups of Council activities have emerged:
1. Development Pathway Activities: These capture the types of actions Councils can take at different stages of the renewable energy project development pathway to:
ensure community participation and development that is shaped by local knowledge and priorities;
manage unwanted impacts on the community, local infrastructure, environment and local economy, and;
facilitate development in a way that creates lasting value.
The development pathway mapping helps to answer questions such as:
What community engagement activities, plans and documents help Councils demonstrate they are representing their region, and at what stage of the renewable energy development pathway should that work happen?
What service and infrastructure upgrades – from roads and housing to water and waste – need to be prioritised to minimise local disruptions, development delays, and to leverage improved long term infrastructure outcomes for the community?
Timing is a critical factor for these activities, with many needing to be addressed, at or before, different points along the renewable energy development pathway (spanning pre-feasibility, through to construction, operation and end of life).
2. Foundational Council Activities – These arethe essential, ongoing work that underpins the Development Pathway Activities and help to form part of the enabling environment for strong regional partnerships through development. The foundations include:
Capacity and capability building
Leadership, coordination and collaboration
Advocacy and inclusion
Regular, clear and honest communication and engagement with the community
Lisa Lumsden, Senior Project Officer, notes:
Councils can and are contributing to local outcomes from renewable energy development…these insights highlight how critical it is to resource Councils and regional leaders appropriately.
The Next Economy is continuing to bring these insights together, working with regional leaders and Councils to get feedback and explore how best to share them – both to highlight the solutions being pioneered locally and to inspire and support other regions across Australia grappling with similar changes and opportunities.
Between February and June 2023, The Next Economy explored a range of perspectives among Latrobe Valley community leaders with regards to the energy transition.
The project involved hosting a series of interviews and workshops that engaged 31 community members, including First Nations people and young people, people from the multicultural community, grassroots environment groups, small businesses and the social service sector.
The report makes visible the wealth of experiences, insights and knowledge that exists in communities across the region and demonstrates how the local community can be a valuable partner in working towards good transition outcomes for the Latrobe Valley region.
The main project finding is that community members see a range of potential benefits from the energy transition, beyond job creation and Australia’s national decarbonisation agenda. If managed well, the transition could provide opportunities to transform the systems that underpin society, the regional economy, and people’s relationship with the local environment.
The key themes presented in the report are:
Socio-economic disadvantage, equity issues and liveability
Community Participation
Institutional capacity and good governance
Environmental protection, remediation and rehabilitation
First Nations leadership
New energy development
Regional economic development
Workforce development
To find out more, download a copy of the What Next? Community Perspectives on the Energy Transition in the Latrobe Valley.
We recently made a submission to the senate enquiry into the closure of the Hazelwood and Yallourn power stations in Victoria. This submission responds to the three points listed in the inquiry Terms of Reference, outlined below:
(a) impact of the closure of the Hazelwood Power Station on the economy and jobs of the Latrobe Valley, and the success or otherwise of economic recovery efforts to date;
(b) expected economic impacts of the proposed closure of Yallourn Power Station in 2028 and options the State Government can pursue to offset the loss of more than 1,000 direct jobs from the plant, as well as associated contractors;
(c) success or otherwise of the Latrobe Valley Authority (LVA) to help the region transition, in light of the decline of funding made available to the LVA over successive State Budgets.
The Next Economy has trained over 300 people working in environment, climate and social service organisations on how to work effectively with regional communities. This has included members of:
