What is the Intergenerational Report?
Every five years, the Australian Government produces an Intergenerational Report that assesses the long-term sustainability of current Government policies and how changes to Australia’s population size and age profile may impact on economic growth, workforce and public finances over the next 40 years.
Why is this important?
It helps our Government forecast what issues are going to be on our doorstep in the near future and this should direct policy making in the short term as a way to address these issues.
It also can help business owners identify measures they can be putting in place early on to avoid these longer term issues impacting their business and personal wealth and succession.
What are the Top 10 findings that came out of the 2015 report?
- By 2054-2055, the workforce participation rate is expected to be 2.2 per cent lower than today at 62.4 per cent
- Older Australians and women need to be encouraged to get a employment, re-enter the workforce, or prolong their careers
- To do that, the report will advocate policies to improve the accessibility of childcare, more flexible working conditions and the removal of discrimination
- The number of women in work has increased by 20 per cent since 1974-1975
- Average income levels have risen from about $40,500 in the early 1990s to about $66,400 today
- The report predicts the population will hit 39.7 million in 2055, and 40,000 people will celebrate their 100th birthday that year
- Babies born in 2055 will expect to live well into their nineties, with men living until 95 and women to 96
- The number of Australians aged 65 and over is projected to more than double
- Health spending has been identified as the continuing big-ticket item for the budget, with a spend per person of $670 climbing to nearly 10 times that in 2055, at $6,460 or overall 5.5 per cent of GDP
- Spending on aged care and pensions is predicted to jump – from 2.9 per cent of GDP to 3.6 per cent for the age pension
You can access the full report on The Treasury website.