Four decades of deficit as nation faces ageing population
The federal government’s latest Intergenerational Report has been released today and the news isn’t good.
The 40-year forecast has identified Australia’s ageing population will become a massive challenge, with debt and deficit anticipated for the coming decades.
“How do you pay for an ageing population?” 4BC political editor Michael Pachi pointed out to Spencer Howson.
Michael said as the population gets older, the ratio of working Australians to retirees will move closer together.
“As a result of discontinued spending as your population gets older and isn’t replaced by [a] newer or younger population, the bottom line is … your debt and deficit will continue to grow.
“The Treasurer is saying that as far as he’s concerned, the government is trying to cut taxes and they believe that by cutting income taxes, that might encourage people to spend more.
“I’m not sure that’s the easy way around it…”
Press PLAY below to hear Pachi’s comprehensive summary of the review