The prime minister has warned Australia needs to collectively plan for an ageing population, with economic growth set to slow in coming decades.
Subscribe now for unlimited access.
or signup to continue reading
The 2023 Intergenerational Report to be released on Thursday will reveal economic growth into the 2060s will be sluggish, largely due to an ageing society and stalled population growth.
At the same time, the economy will be two-and-a-half times bigger over the next 40 years.
Prime Minister Anthony Albanese said the release of the report signalled the need for the country to be prepared for an ageing workforce and other issues associated with it.
"We need to be collectively planning as a nation for it," he told ABC Radio on Tuesday.
"That's why we need to respond to the aged care royal commission properly.
"That's why we need to consider issues such as the way we build - our housing needs to be adaptable so that as people age they can stay in-home, which is what most people, of course, prefer to do."
Mr Albanese said the report would be an "important signpost" for Australia's direction over coming decades.
GDP is projected to grow at an average of 2.2 per cent a year from 2022/23 to 2062/63, which is 0.9 percentage points lower than the average growth of the past 40 years.
Treasurer Jim Chalmers said Australia was one of the best-placed nations to respond to the economic headwinds ahead because of its low unemployment and near-record labour force participation.
He said the slower growth was in line with other advanced economies.
Tax and non-tax receipts are set to rise to 26.3 per cent of GDP in 2033/34, before peeling back slightly in the three following decades.
Structural changes to the economy will put pressure on tax revenue, with proceeds from fuel and tobacco excises to shrink as Australia transitions away from fossil fuels and as fewer people smoke.
Company tax and the GST will largely stay in line with economic growth, while the percentage of revenue from personal taxes will increase as incomes rise and the population grows.
Dr Chalmers has ruled out any changes to the GST, but is eyeing off tax reform in the areas of multinationals, high-balance superannuation and offshore petroleum production.
Nationals leader David Littleproud said a "mature conversation" about tax reform was needed.
"It's important we look at what that tax mix looks like, what our economy will look like in 30 to 40 years ... and I think that's about making sure it's equitable," he told ABC Radio.
"We do need political leadership from all sides to have that mature conversation, knowing the burdens that are coming on the NDIS, Medicare, and making sure we can provide that safety net."
Meanwhile, there is mixed news on the economic front, with the latest ANZ-Roy Morgan survey showing consumer confidence dropping by 2.4 points over the week.
Among the mainland states, confidence rose in South Australia and WA, while it fell in NSW, Victoria and Queensland.
The reading for "weekly inflation expectations" jumped 0.3 percentage points to 5.5 per cent.
The result for "future financial conditions" was down 4.2 percentage points, after a 7.6 point rise in the previous week.
ANZ senior economist Adelaide Timbrell said the fall may have been driven by some weakness in the Australian dollar, but the four-week moving average of the consumer confidence index continued to edge higher.
Australian Associated Press
