WHEN April 14-15, 2014

True Issues is a research tool designed to assist Australian organisations understand where their issues truly sit within the contemporary issues landscape. The economy, health, education; certainly all important top of mind issues to Australians, but where does that leave the many other issues and what is it that truly focuses attention on these matters? True Issues is a unique offering. Run three times a year, True Issues not only tracks and prioritises issues facing Australians, but delves deeper to truly identify what is driving the prioritisation of issues. For further enquiries or to include your issue in the next wave, please contact Sabine Wolff, Senior Research Executive at swolff@jwsresearch.com or by telephone on (03) 8685 8555. 2

True Issues Wave 6 (W6): in field 26 February 2 March, 2015 WHEN April 14-15, 2014 Comprised of a representative sample of 1,001 Australians aged 18+ Conducted as an online survey with sample drawn from the Cint s OpinionHUB panel marketplace platform (www.cint.com) Margin of error is +/-3.1% at the 95% confidence level for results near 50% Previous waves: W1 = Wave 1, June 2013; W2 = Wave 2, November 2013; W3 = Wave 3, March 2014; W4 = Wave 4, July 2014; Wave 5, November 2014 Conducted in compliance with AS-ISO 20252 3

Assessment of the federal government s overall performance has fallen 5 points since the last round of True Issues in November 2014. Just 19% of respondents rate federal government performance as good or very good; this is a lower rating than any other level of government (and lower than business and industry) for the first time since before the election of the current government. Looking at the priority area of quality of government, a clear majority of Australians (57%) rate federal government performance as poor (21%) or very poor (36%). Driving these poor ratings are concerns that the government is wasting taxpayers money and failing to concentrate on the issues that matter a concern that has increased since the last wave of research in November. Accompanying and likely partially driving these reduced performance ratings are pessimistic assessments and outlooks on the nation s economic health. National economic health ratings are at their lowest point for this government. Economic direction ratings now languish at or below pre-election levels; Australians rating of the direction of their own personal finances is at a record low for this survey. 5

These results confirm the government has so far been unable to deliver on the promise of a stronger economy and a balanced budget. Concerns about cost of living remain very high, and the rated importance of the economy as an issue area appears to be increasing after a gradual decline since 2013. Fears for the future are key when it comes to a more detailed assessment of Australians concerns in the business and industry priority area. The key pressures are the development of industries for the future, and the future of manufacturing. And fears for Australia s economic future creep into other policy areas: funding and cost of access issues dominate top-order health and education concerns; the newly added priority area of regional employment and training ranks in the top 3 subissues under the regional and rural issues priority area; and 31% of people who are concerned about infrastructure see Australia s ageing population as a key concern. The results reinforce that for the federal government the key challenge of the 2015 Federal Budget will be to strengthen its economic futures narrative and credentials, to reverse the decline in assessments of its performance and national economic health. 6

The bright spot for government performance is undoubtedly still in immigration and border security. Government performance in this area is steady at around a third of Australians rating it as either good or very good. Crucially, the importance of immigration and border security as an issue has increased since the last tracking wave in November 2014, although concern over refugees and asylum seekers has declined. However, the counterpoint driving increased priority is that people are more concerned than ever about Australians travelling to the Middle East to fight as insurgents. Interestingly, the other priority area that has seen a significant increase in importance ratings over the course of True Issues is defence and security: defence is still the government s highest rated priority area in terms of performance, but performance ratings also show signs of decline from a high point in July 2014. In defence and security, the issues driving concern are around terrorism, although concern about the threat of home-grown terrorism and local religious and ethnic violence have decreased markedly. Concern about terrorism broadly is unchanged from November 2014 with 59% of Australians nominating it as the key issue. 7

Ultimately, the key interpretation from these survey results suggests that a strategy of focusing on defence and immigration-related issues, although it does play to the government s relative strengths, is unlikely to meaningfully change opinions about overall performance. Despite their continuing importance to Australians as government priority areas, they remain solidly middle tier issues, well behind health, the economy and education. In order for the government to regain ground in terms of overall performance ratings, it will need to address the slide in perceptions of the country s economic health and economic direction especially in relation to cost of living pressures and Australia s industrial future and of course quality of government. One of the biggest criticisms that Australians who are concerned about quality of government have is about focusing on the issues that really matter : prioritising immigration and defence narratives at the expense of a long-term economic strategy and vision will be unlikely to fulfil this desire for the government to concentrate on the key issues at hand. 8

Especially at a federal economy and business and industry level. Economic Health 26 22 16 15 14 25 23 19 18 17 25 24 24 21 21 20 19 21 18 19 19 19 17 17 15 15 15 14 14 13 % Very strong + strong Business and industry National economy Local community State economy Personal situation W1 June 2013 W2 November 2013 W3 March 2014 W4 July 2014 W5 November 2014 W6 March 2015 Change of federal government Spotlight on: National Economic Health W6 March 2015 43% 27% 3% 14% 7% 5% Higher amongst (total strong): HH income $100k+ (25%) 18-34 y/os (24%) Very strong Strong Average Weak Very weak Don't know Q6. Thinking about the economic health of each of the following, how would you rate the economic health of each on a scale from 1 to 5? Base: All respondents, W1 n=1,000; W2 n= 1,001; W3 n=1,004; W4 n=1,002; W5 n=1,004; W6 n=1,001 10

Economic direction ratings have declined further since the last wave of this research in November. 23 21 20 32 17 36 28 24 24 22 32 32 16 24 24 23 24 22 19 W1 June 2013 W2 November 2013 W3 March 2014 W4 July 2014 W5 November 2014 W6 March 2015 Change of federal government Future Direction 24 30 28 % Right direction Personal situation 24 23 Business and industry 22 22 Local community 21 20 State economy 19 National economy Spotlight on: National Economic Outlook W6 March 2015 33% 39% 19% 9% Right direction Neither Wrong direction Don't know Higher amongst (right direction): HH income $100k+ (26%) 55+ y/os (23%) Q7. Thinking about the future, do you think each of the following is headed in the right or the wrong direction? Base: All respondents, W1 n=1,000; W2 n= 1,001; W3 n=1,004; W4 n=1,002; W5 n=1,004; W6 n=1,001 11

Assessments of federal government performance are returning to pre-change of government levels. Overall Performance 26 26 18 16 29 28 23 22 28 24 23 19 30 30 31 29 28 24 24 26 23 23 21 19 Local council Business and industry State government Federal government % Very good + good W1 June 2013 W2 November 2013 W3 March 2014 W4 July 2014 W5 November 2014 W6 March 2015 Change of federal government Spotlight on: Overall Federal Government Performance W6 2015 31% 26% 21% 5% 14% 2% Higher amongst (total good): HH income $100k+ (27%) Very good Good Average Poor Very poor Don't know Q5. How would you rate the current overall performance of each of the following organisations in Australia, using a scale from 1 to 5? Base: All respondents, W1 n=1,000; W2 n= 1,001; W3 n=1,004; W4 n=1,002; W5 n=1,004; W6 n=1,001 12

Issue Importance vs Performance Immigration and border security Economy and finances 67% Education and training 60% 80% 34% 33% 39% 44% 24% 19% 40% 19% 19% 18% Environment 38% 44% Regional and rural Australia 46% 16% 16% 15% 15% 13% 25% Defence and security Business, mining and industry Infrastructure and population Hospitals and healthcare Community and social issues Quality of government Rated in top five most important Total good performance = very good + good Q1. From the following list, please select the 5 most important issues to you as something governments and business should be focusing on. Q4. Overall and in general, how would you rate the current performance of the federal government in Australia on the each of the following issues? *Please note that prior to W5, Q4 was asked in relation to governments in Australia. Base: All respondents, W6 n=1,001 14

The importance of health has declined slightly, while the importance of immigration and border security has increased between the November and March tracking waves. Issue Area Importance top tier Over the course of the current government 86 83 85 84 80 Health and hospitals 71 66 66 66 67 Economy and finances 65 63 63 62 60 Education and training 43 42 37 44 42 37 46 44 45 41 39 38 46 Quality of government 44 Community and social 44 issues Immigration and border security W2 November 2013 W3 March 2014 W4 July 2014 W5 November 2014 W6 March 2015 Change of federal government % Q1. From the following list, please select the 5 most important issues to you as something governments and business should be focusing on. *Please note that prior to W5, Q4 was asked in relation to governments in Australia. Base: All respondents, W1 n=1,000; W2 n= 1,001; W3 n=1,004; W4 n=1,002; W5 n=1,004; W6 n=1,001 15

Infrastructure and population has declined slightly in terms of importance. Issue Area Importance lower tier Over the course of the current government 45 44 43 39 39 36 44 44 40 39 38 Infrastructure and population Defence and security The environment 34 31 34 28 26 26 22 27 27 25 Regional and rural Australia 18 18 16 19 Business, mining and industry W2 November 2013 W3 March 2014 W4 July 2014 W5 November 2014 W6 March 2015 Change of federal government % Q1. From the following list, please select the 5 most important issues to you as something governments and business should be focusing on. *Please note that prior to W5, Q4 was asked in relation to governments in Australia. Base: All respondents, W1 n=1,000; W2 n= 1,001; W3 n=1,004; W4 n=1,002; W5 n=1,004; W6 n=1,001 16

Immigration continues to be the one bright spot for federal government, although the upward trend in rated performance has levelled off. Issue Area Performance top tier 26 22 20 13 12 33 23 23 13 17 34 26 26 38 29 21 17 20 36 28 25 21 33 33 22 34 24 19 19 19 Defence and security Immigration and border security Business, mining and industry Economy and finances Infrastructure and population % Very good + good W1 June 2013 W2 November 2013 W3 March 2014 W4 July 2014 W5 November 2014 W6 March 2015 Change of federal government Q4. Overall and in general, how would you rate the current performance of the federal government in Australia on the each of the following issues? *Please note that prior to W5, Q4 was asked in relation to governments in Australia. Base: All respondents, W1 n=1,000; W2 n= 1,001; W3 n=1,004; W4 n=1,002; W5 n=1,004; W6 n=1,001 17

Issue Area Performance lower tier 20 19 18 18 18 17 16 15 15 16 15 15 15 14 14 14 14 14 13 13 11 11 11 18 18 16 16 16 16 15 15 15 15 13 12 Education and training Health and hospitals Environment Community and social Regional and rural Australia Quality of government 8 % Very good + good W1 June 2013 W2 November 2013 W3 March 2014 W4 July 2014 W5 November 2014 W6 March 2015 Change of federal government Q4. Overall and in general, how would you rate the current performance of the federal government in Australia on the each of the following issues? *Please note that prior to W5, Q4 was asked in relation to governments in Australia. Base: All respondents, W1 n=1,000; W2 n= 1,001; W3 n=1,004; W4 n=1,002; W5 n=1,004; W6 n=1,001 18

Most important issues Least important issues Top 5 most important issues % Poor Performance Performance (% Very good + % Good) Average Performance 19

Most important issues True Issues 6 Least important issues Top 5 most important issues % Poor Performance Performance (% Very good + % Good) Average Performance 20

Most important issues True Issues 6 Top 5 most important issues Least important issues % Poor Performance Performance (% Very good + % Good) Average Performance 21

Health Issues Government Performance on Hospitals and Healthcare 41% Funding to the health system 80% Availability of beds 35% 26% 26% Cost of medicines Mental health issues Hospitals and healthcare Elective surgery waiting lists 21% 21% 19% 18% 16% 16% 15% Regional access 16% Rated in top five most important Up 4 points since November Down 5 points since November Total good performance = very good + good National dental health funding Quality of medical professionals 3% Very good Private health insurance 13% Funding for research 32% PBS funding 13% 26% 23% Good Average Poor Very poor Screening of fresh and frozen food imports* 9% 8% 7% Number of medical professionals NDIS 2% Don't know Indigenous health * New response category Q2. Please select up to three issues or concerns relating to hospitals and healthcare that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Hospitals and healthcare in top five, W1 n=837; W2 n=861; W3 n=845; W4 n=857; W5 n=849; W6 n=800 23

Economy Issues Government Performance on the Economy 59% Cost of living New categories of economic growth and pension-related issues are solid middle-tier economic concerns. 4% 15% 33% 24% 20% 3% 67% 19% Wages and employment Strength of national economy debt 26% 26% 25% 23%20% 20% Economic growth* Housing affordability & interest rates The economy and finances National Rated in top five most important Total good performance = very good + good Budget surplus Petrol prices 17% 16% 15% Pension eligibility and Skilled amount* jobs and apprenticeships Business taxation 9% 8% Medibank 7% 7% 6% 3% 3% Personal taxation Q2. Please select up to three issues or concerns relating to the economy and finances that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Economy and finances in top five, W1 n=669; W2 n=708; W3 n=673; W4 n=655; W5 n=621; W6 n=667 Very good Good Average Poor Very poor Super GST increase Overseas trade and exports Don't know Sale of * New response category Negative gearing 24

Education Issues funding 43% Education 39% standards 34% 33% 29% Cost of education 60% 18% Higher education Quality of teaching Education and training Public school funding Rated in top five most important 25% Literacy and numeracy levels Total good performance = very good + good 13% 13% 12% 11% 8% 8% 7% 6% Classroom sizes Childcare* Teacher salaries 3% Very good Government Performance on Education 15% National Curriculum 37% Career counselling Number of university places 23% Private school funding 19% Good Average Poor Very poor Religion in schools 3% Don't know 3% NAPLAN * New response category Q2. Please select up to three issues or concerns relating to education and training that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Education and training in top five, W1 n=662; W2 n=653; W3 n=633; W4 n=644; W5 n=664; W6 n=599 25

Quality of Government Issues Government Performance on Quality of Government 43% 42% Wasting taxpayers money 46% 13% Focusing on issues that matter 32% Listening to voters Quality of government Leadership Rated in top five most important Up 5 points from 37% in November 26% 26% 25% 23% 21% Politicians salaries and benefits Total good performance = very good + good Corruption* Arguing and infighting 4% Very good 9% Expenses and benefits 17% Red tape 27% 21% 11% 11% Power of minor parties 36% Good Average Poor Very poor Policy development 3% Don't know 7% Women in cabinet * New response category Q2. Please select up to three issues or concerns relating to quality of government that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Quality of government in top five, W4 n= W1 n=398; W2 n=372; W3 n=419; W4 n=456; W5 n=410; W6 n=463 26

Community and Social Issues 31% Poverty 27% Community violence 44% 15% Inequality 22% 21%21% Crime, law and order Domestic violence Aged policies 15%15%15% 14% 14% Govt service delivery Community and social issues Public housing Rated in top five most important Obesity Drug use Total good performance = very good + good Government Performance on Community and Social Issues 2% Very good 13% 38% Marriage equality Family assistance Childcare* 12% 12% Indigenous 11% 10% 10% issues Bullying Racism 8% 8% 7% Gender pay gap Alcohol abuse 23% PPL 20% Good Average Poor Very poor * New response category Gambling 3% Don't know Drugs in sport 4% 4% 3% Underage 2% 2% drinking Playing active global role Q2. Please select up to three issues or concerns relating to community and social issues that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Community and social issues in top five, W1 n=376; W2 n=430; W3 n=434; W4 n=458; W5 n=439; W6 n=440 27

Immigration Issues Government Performance on Immigration 44% Up 8 points since November 50% 48% 47% Australians travelling to the Middle East to fight as insurgents 33% Immigration numbers Refugees and asylum seekers Immigration and border security Rated in top five most important People smuggling 42% Down 9 points since November Total good performance = very good + good 11% Very good 36% Domestic border security at ports and airports 22% 457/employment visas 27% 31% 14% 17% Good Average Poor Very poor 16% 16% Detention of asylum seekers 3% Don't know Children in detention* * New response category Q2. Please select up to three issues or concerns relating to immigration and border security that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Immigration and border security in top five, W1 n=473; W2 n=420; W3 n=377; W4 n=394; W5 n=380; W6 n=436 28

Infrastructure Issues Government Performance on Infrastructure and Population 40% Public transport 48% 45% 39% New category of ageing population is a source of concern. 3% 17% 20% 16% 4% Roads and congestion Housing availability Population growth 34% 31% Ageing population* Water Very good Telecomms and IT 22% 19% 17% 16% Good Average Poor Very poor Urban sprawl Don't know 40% Infrastructure and population 19% Rated in top five most important NBN Rail 12% 5% Airports Ports 2% Total good performance = very good + good * New response category Q2. Please select up to three issues or concerns relating to infrastructure and population that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Infrastructure and population in top five, W1 n=487; W2 n=453; W3 n=444; W4 n=438; W5 n=443; W6 n=400 29

Defence and Security Issues Government Performance on Defence and Security 59% Terrorism Home-grown terrorism 34% 39% 30% Concern about terrorism is as high as ever, but concern about home-grown terrorism has dropped 19 points from 49% in November. Similarly, concerns about military involvement in the Middle East and religious and ethnic violence are also down 8 points since the last track. Quarantine Military 17% 16% capability 15% in the ADF 14% 12% 10% 10% 10% 10% 9% Religious and ethnic violence Defence and security Security alliances Rated in top five most important Military involvement in the Middle East Foreign aid budget Total good performance = very good + good Cyberwarfare 8% Very good Bullying and abuse 26% Defence procurement and investment 39% Overseas conflicts 12% 6% 6% 4% 1% Peacekeeping capability 9% Good Average Poor Very poor Nuclear and biochemical warfare Stability in Asia 4% Don't know Relations with neighbouring countries* * New response category Q2. Please select up to three issues or concerns relating to defence and security that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Defence and security in top five, W1 n=295; W2 n=279; W3 n=259; W4 n=310; W5 n=347; W6 n=390 30

Environment Issues Government Performance on the Environment 42% Climate change 33% 27% 38% 33% Sustainable use of resources Renewable energy Pollution 22% 21% 19% 18% The environment Recycling Reducing carbon emissions 17% 16% Rated in top five most important Reducing reliance on coal RET 14% 13% 12% 11% 11% 10% Marine conservation Water management Total good performance = very good + good Extreme weather 4% 12% Very good CSG Effects of mining Price on carbon 9% 9% Native species 18% Good Average Poor Very poor Loss of arable land 6% 5% 4% 4% 4% Overfishing Biodiversity 5% Don't know Murray Darling Basin Whaling Q2. Please select up to three issues or concerns relating to the environment that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Environment and climate change in top five, W1 n=358; W2 n=390; W3 n=390; W4 n=363; W5, n=436; W6 n=380 31

Regional and Rural Issues 42% 42% Foreign ownership 25% 15% Access to health services Transport and fuel costs 31% 30% 28% Employment and training* This new category of regional employment and training highlights the economic concerns facing regional and rural Australia. Regional and rural Australia Farming sustainability Rated in top five most important Natural disasters Total good performance = very good + good Regional and rural communities 23% 22% 21% 18% Loss of arable land Government Performance on Regional and Rural Australia 3% 12% 10% 7% 6% 4% Q2. Please select up to three issues or concerns relating to regional and rural Australia that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Regional and rural Australia in top five, W1 n=239; W2 n=258; W3 n=335; W4 n=260; W5 n=272; W6 n=245 Very good CSG 34% Water and irrigation rights 25% Murray Darling Basin 18% Good Average Poor Very poor Marine parks 7% Don't know Cropping and livestock * New response category 32

Business, Mining and Industry Issues Developing industries for the future* 31% 28% Foreign ownership 24% 19% Future of manufacturing 20% 20% 19% Trade and exports Investment in renewables 16% 15% 14% CSG 13% Foreign Nuclear Energy Sharing investment power 11% 11% 11% policy resource 9% 9% 9% 9% wealth Taxes Union 8% corruption IR 6% Energy sustainability R&D Business, mining and industry Rated in top five most important This new category shows how important R&D and new industries are for Australians. Red tape Total good performance = very good + good Government Performance on Business, Mining and Industry 4% Very good 20% Reducing coal reliance 38% 17% Good Average Poor Very poor Gender pay gap RET 13% 7% 5% 5% 5% 4% Industry subsidies Don't know Reducing emissions FIFO * New response category Q2. Please select up to three issues or concerns relating to business, mining and industry that are most important to you that you think federal government should be addressing or focusing on specifically. Base: Business, mining and industry in top five, W1 n=196; W2 n=181; W3 n=211; W4 n=175; W5 n=159; W6 n=187 33

For further enquiries or to include your issue in the next wave, please contact Sabine Wolff, Senior Research Executive swolff@jwsresearch.com or by telephone on (03) 8685 8555. To download this True Issues report, please go to: www.jwsresearch.com/#issues 34