While discontent with democracy is relatively low in Australia, it remains under pressure amid a global slide away from liberal democracy, according to the Grattan Institute.
Strain is being driven by economic inequality and unfairness, as well as a declining sense of belonging, the institute found in its future-proofing Australia's democracy report, released on Monday.
About one in 10 Australians agreed it was sometimes justified to use extreme measures such as violence to advance a cause they cared about, the report noted.
"Most Australians value democracy, and think it is preferable to any other system," it said.
"Compared to the rest of the world, Australia comes from a place of strength and has a history of democratic innovation to be proud of.
"But satisfaction with how our democracy is working is fragile and trust in political actors is low."
The institute recommended a more representative federal parliament to boost trust and improve long-term decision-making, increased engagement with civil society to make people feel they have a voice, and investment in news media to ensure trusted information.
"Australians need confidence that our system of government can work for them and is capable of making difficult policy reforms in the public interest, not vested interests," it said.
"Crises are the moments that build or erode trust and we face a future of rolling shocks.
"Our governments need to be better prepared by reducing our vulnerability to known risks, building fiscal buffers, and calibrating expectations about what governments can do to cushion the blow."
Grattan Institute CEO and the report's main author Aruna Sathanapally said there were warning signs for Australian democracy and work to be done to safeguard it in turbulent times.
"Reforms that show that those in power are willing to tackle our big challenges, such as the housing crisis, the climate emergency, and the imperative for serious tax reform, will not only deliver a better economy and society, they will build trust in our democratic system to deliver for the people," Dr Sathanapally said.
