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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.


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