Understanding the impact of current policies on both the present and future is crucial for building better policies and strengthening existing ones. Australia’s economy will undergo significant transformations in the coming decades, driven by factors such as population ageing, heightened demand for care services, the expansion of digital and data technology, climate change and the net zero transition and increased geopolitical risks. To navigate these complexities, the Australian Government produces intergenerational reports. These reports offer insights into economic outlooks and the government’s budget trajectory over the next 40 years. The reports provide evidence on the long-term sustainability of current policies and how demographic, technological and other structural trends may affect the economy and allow policy makers to make informed decisions.
Intergenerational Reports – Australia
Abstract
The analysis uses age-disaggregated data on indicators including homeownership, access to education, participation on government-funded training, participation in the labour market, medical spending and migration. Through the evidence presented in the reports, the Australian Government aims to foster a more dynamic, productive and resilient economy, enhance the skills and capabilities of the workforce, benefit from opportunities presented by net zero initiatives and digitalisation and invest in the care and support economy.
The Intergenerational Reports highlight the significance of tackling structural budget challenges and implementing enhancements to the integrity and sustainability of the tax and transfer system. Together, these measures contribute to lowering future levels of debt, reducing the interest burden on future generations. Policy makers use the Intergenerational Reports within this framework to provide guidance to the government on the sustainability of policies, particularly their impact on the fiscal burden which disproportionately impacts younger generations. This practice hence supports the integration of considerations of intergenerational justice in public budgeting processes.
Further reading
Australian Government (2023) Intergenerational Report 2023 at a glance; Australian Government (2023) Intergenerational Report 2023 Australia’s future to 2063.
This practice also supports the implementation of provision VI.1 of the OECD Recommendation on Creating Better Opportunities for Young People.
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