Australians' living standards face the greatest threat in a generation, with no signs of strong wage growth, longer unpaid commuting times and a rise in workforce casualisation putting more pressure on middle- and lower-income households than they have faced in 20 years.

A new report from Per Capita, an independent think tank, also shows the split of national income between labour and capital is continuing to worsen in Australia, with wages' share of national income dropping from 65.5 per cent at the turn of the century to 59.7 per cent in 2012.

Australian commuters are now spending an extra hour a week travelling to and from work, a new report has found. Credit:Simon O'Dwyer

It says this has occurred at the same time as the bulk of productivity improvements have come from labour rather than capital in recent years.

The report, "Paradise Lost? The race to maintain Australian living standards", says Australians' living standards are under threat due to slowing productivity, rising unemployment and slowing wages growth.