The Australian Government has outlined the challenges to come in Australia to 2050: future challenges, the 2010 intergenerational report.

In Australia to 2050, the government cites an ageing population, escalating pressures in the health system and climate change as the key long-term challenges for Australia’s economic growth, living standards and government finances.

The ageing population
We are living longer, with life expectancy in Australia among the highest in the world. It’s great news; amid all the talk of the financial impact of the ageing population, we sometimes forget to celebrate our medical successes.

However, when combined with a low birth rate, the subsequent fall in the number of traditional working age people to support each Australian aged 65 years and over (from 5 people today to 2.7 people in 2049-50) is predicted to strain the economy.

Earlier intergenerational reports predicted that there would be 2.4 people of working age to support each person aged 65, so we look to be in a better position than previously forecast. But there is still a way to go. Echoing the themes of the 2002 and 2007 intergenerational reports, Australia to 2050 emphasises the need for prudent planning and productivity growth to lessen the impact of our ageing population.

The health system
The ageing population is one of the factors influencing the increasing importance of the health system. As stated in Australia to 2050, ‘as the population ages, more people fall into the older age groups that are the most frequent users of the system’.

Costs are also growing across all age groups, and in all major categories of health spending. Health expenditure is projected to nearly double as a proportion of GDP over the next 40 years.

There is a need to deliver health initiatives and reform that will deliver what we expect from our health system. The Australian Government vows to undertake important health reforms in response to this need.

Climate change
Australia to 2050 lists climate change as a threat to Australia’s economy, the largest threat to Australia’s environment, and the defining intergenerational issue of our time.

The Australian Government intends to introduce the Carbon Pollution Reduction Scheme (CPRS), under which it claims that 1,000 of the biggest polluters will have to pay for the right to pollute, and that businesses and the community will therefore determine how and where the required emissions reductions will occur.

The CPRS will be supported by policies including the expanded Renewable Energy Target and the $4.5 billion Clean Energy Initiative.

Other updates
The Australian Government lists other findings and proposes more change in the full report.

Access Australia to 2050: future challenges here

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