The Treasurer has announced ahead of time that the 2020 Intergenerational Report will be released in July, which is a breach of the Charter of Budget Honesty. Treasurer Josh Frydenberg announced – on the same day as he released MYEFO – that the fifth Intergenerational Report would be released in… Read More »2020 Intergenerational Report to be released late, in breach of Charter of Budget Honesty
Following release of the Intergenerational Report 2015 the Australian Institute of Superannuation Trustees (AIST) has called for the Government to review the proposal to lift the Age Pension eligibility age to 70 by 2035.
The AIST says the Intergenerational Report (IGR) provides no evidence supporting an increase to the age pension age, instead projecting that “future pension costs in our ageing population are manageable in existing policy settings.”
“This report has a very positive message; Australians are living longer, with increased life expectancy accompanied by better quality health,” said SMSF Association CEO Andrea Slattery.
Given the Intergenerational Reports are meant to forecast the challenges of an older population on the Australian economy and federal budget in 40 years time the superannuation and age pension systems should figure prominently.
However, as with previous reports, the Intergenerational Report 2015 did not devote much attention to either, when released by Treasurer Joe Hockey.
The Treasurer Joe Hockey has released the 2015 Intergenerational Report, projecting out to 2055, saying “the Report is the social compact between the generations – children, grandchildren, parents, grandparents and each other.”
“It projects what the Australian population, economy, and budget could look like in 40 years and shows that Australia’s best years are ahead of us.”
- Australian populations projected to be 39.7 million in 2055
- By 2055 male life expectancy projected to increase from 91.5 years to 95.1, female life expectancy from 93.6 to 96.6
- Number of Australians aged 65+ projected to double by 2055
- Number of 65+ workers expected to increase from 12.9% to 17.3%
- Number of people aged 15-65 compared to 65+ expected to decrease from 4.5 today to 2.7 by 2055
- Annual economic growth per person forecast to be 1.5%, compared to 1.7% over past 40 years
Treasurer Joe Hockey will tomorrow release the 2015 Intergenerational Report, the fourth in the series. Looking 40 years into the future the demographic projections of the previous reports have been relatively stable, though less so for the Government debt and deficit forecasts.
Releasing the first Intergenerational Report in 2002 then Treasurer Peter Costello said:
This is the first report of its kind and the first time any attempt has been made in the Budget to look across the generations and identify the challenges which lie ahead for our society and our governments. What challenges will our children and their children have to confront in forty years time? What shape will Australia’s finances be in 2042 based on current policies? And what should we do now to prepare for the generations ahead?
The release of the Intergenerational Report is now officially late. Under the Charter of Budget Honesty Act 1998, the “Treasurer is to publicly release and table an intergenerational report at least once every 5 years.”
The Act also says that, after the first Intergenerational Report, “subsequent intergenerational reports are to be publicly released and tabled within 5 years of the public release of the preceding report.”