Australia is a country endowed with natural resources such as coal, lithium, rare earths amongst other high-level commodities, which attract global trade opportunities viable for boosting its economy. Amidst its natural resources, Australia has been viewed as a prosperous nation in view of its standing in the Commonwealth of Nations. Nonetheless, the country still faces numerous challenges ranging from floods, heatwaves, bushfires, cyclones, and drought amongst other forms of hazards. While such hazards reverse hardly-won strides of development, other inter-related aspects of vulnerability which limit attributes of social capital poses tremendous challenges which impact on pre, during and post disaster interventions. By using causal loop diagrams, this study takes a systemic approach towards exploring emerging system structures; interdependence and interconnectivity; and institutional pressures, to unravel factors influencing Australia’s vulnerability to hazards with the aim of facilitating concerted interventions for reducing vulnerability and ultimately, the risks impeding sustainable development.