The Australian Government has released the latest Intergenerational Report 2015 as required by the Charter of Budget Honesty Act which has a stipulation for the report to be produced every five years (The previous ones being in 2002, 2007 and 2010). This much anticipated report contains a number of key themes which have been enunciated by the Federal Government and the Federal Treasurer.
Of note:
Population: Male life expectancy is projected to rise from 91.5 years to 95.1 years in 2050. Female life expectancy will rise from 93.6 years to 96.6 years in the same period. There are likely to be 40,000 people aged over 100 years by 2055 and.the population is projected to reach 39.7 million.
Economic growth: is projected to be 2.8 % per annum on average over the next forty years with the annual income per Australian rising from $66,500 today to $117,300 by 2055. The Australian Government is currently spending over $100 million per day more than it collects in revenue and is borrowing to meet the shortfall. The total costs of interest payments amounts to $40 million per day to cover this debt.
Health spending: is projected to increase from 4.5 % of GDP to 5.5 % by 2054-55. If the proposed current budget approach is not followed health expenditure will reach 7.1% of GDP by 2054-55.
Social Services: currently the Federal Government spend $150 billion or 35 % of the Commonwealth Budget covering pensions, aged care, payments to families and individuals and the National Disability Insurance Scheme. This is expected to rise but is projected to be placed on a sustainable pathway.
Education: As the population ages it is forecast that the proportion of the population in education will be smaller especially in primary and secondary sectors. It is projected nonetheless that the cost per person will rise from $1,500 today to $1,900 in 2054-55.
The Report in many aspects reflects the perspective of the current Federal Government but it does not convey that the Australian economy is, in any form, in a critical state nor that there is a budget crisis. There are however challenges to meet over the next 5 to 10 years. The Report also devotes little content to the issue of climate change and its corresponding impact on health and economic activity. This critical factor will have greater influence, predominantly negative, as each decade passes.
The report can be accessed via the link below:
Of note:
Population: Male life expectancy is projected to rise from 91.5 years to 95.1 years in 2050. Female life expectancy will rise from 93.6 years to 96.6 years in the same period. There are likely to be 40,000 people aged over 100 years by 2055 and.the population is projected to reach 39.7 million.
Economic growth: is projected to be 2.8 % per annum on average over the next forty years with the annual income per Australian rising from $66,500 today to $117,300 by 2055. The Australian Government is currently spending over $100 million per day more than it collects in revenue and is borrowing to meet the shortfall. The total costs of interest payments amounts to $40 million per day to cover this debt.
Health spending: is projected to increase from 4.5 % of GDP to 5.5 % by 2054-55. If the proposed current budget approach is not followed health expenditure will reach 7.1% of GDP by 2054-55.
Social Services: currently the Federal Government spend $150 billion or 35 % of the Commonwealth Budget covering pensions, aged care, payments to families and individuals and the National Disability Insurance Scheme. This is expected to rise but is projected to be placed on a sustainable pathway.
Education: As the population ages it is forecast that the proportion of the population in education will be smaller especially in primary and secondary sectors. It is projected nonetheless that the cost per person will rise from $1,500 today to $1,900 in 2054-55.
The Report in many aspects reflects the perspective of the current Federal Government but it does not convey that the Australian economy is, in any form, in a critical state nor that there is a budget crisis. There are however challenges to meet over the next 5 to 10 years. The Report also devotes little content to the issue of climate change and its corresponding impact on health and economic activity. This critical factor will have greater influence, predominantly negative, as each decade passes.
The report can be accessed via the link below:
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