Report Reveal Costs of Future Ageing
The forthcoming Treasury Report (IGR) updating the costs of an ageing
Australian population is more sanguine about the burden on future generations.
A report in today’s (23 March) Australian newspaper says that the five year IGR update, to be presented along with the May budget, shows that an increasing birth rate and number of older men remaining in the workforce are reducing the need to set aside government budget surpluses for increased ageing costs such as pensions, health and pharmaceuticals. It suggests that future generations might be able to fend for themselves.
The Government had been planning to use the updated IGR as its electoral focus on preparing for future generations, and the Treasurer used these costs in defending the Future Fund against Labor’s broadband funding plans.
The Australian quotes the head of Treasury arguing in 2004 against setting up an intergenerational fund, saying it imposed higher tax levels on current generations. He said the best way to deal with ageing was to raise growth with higher productivity.