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29 Jun 2021

Old-age dependency ratio

The Intergenerational Report is published every 5 years and forecasts an outlook for the Australian economy and the Federal Government’s budget over the next 40 years.

Bottom line, the Australian economy is projected to grow at a slower pace over the next 40 years due to slower population growth.

This has implications for the old-age dependency ratio which is the ratio of working-age people to those over 65.

For every person aged over 65 in 1981-82 there were 6.6 working-age people, today we are at 4.0 and by 2060-61 it is forecast to fall to 2.7 working-age people for every person aged over 65.

Click for Chart 2.17

So where does the Federal Government get the money to pay for healthcare, the Age Pension and end-of-life support?

Tax revenue, across the board as a share of GDP is forecast to rise steeply over the next two decades.

Click for Chart 8.1

For a full copy of the just released 2021 Intergenerational Report please click the following link.

Click to read.

 

At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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