Intergenerational Report 2023

The outlook for the economy and the government’s Budget to 2062–63 is projected in the sixth Intergenerational Report, released by the Australian Government in August 2023.

The Intergenerational Report 2023: Australia’s future to 2063 (cover in Figure 1) highlights the effects of demographic change on economic growth and assesses the long-term financial implications of current policies and trends.

Figure 1: Intergenerational Report 2023 cover
 

Front cover of ‘Intergenerational Report 2023. Australia's future to 2063.'

Source: The Treasury

It focuses on 5 major forces shaping the Australian economy over the coming decades:

  • population ageing
  • technological and digital transformation
  • climate change and the net zero transformation
  • rising demand for care and support services
  • geopolitical risk and fragmentation.

These forces will influence the future path and structure of the economy, and change how Australians live, work and engage with the world. The Intergenerational Report 2023 helps extend the horizon of policy decisions, with its projections and analysis of long-term challenges and opportunities informing policy decisions made today.

The report is a vital resource for assessing Australia’s long-term fiscal sustainability – the government’s ability to manage its finances so it can meet its spending commitments now and in the future. The 5 long-term spending pressures identified in the report are health, aged care, the National Disability Insurance Scheme, defence and interest on government debt.

Long-term projections of Australia’s economy, fiscal sustainability and demographics are a major feature of each intergenerational report. These projections are bolstered by detailed analysis of key trends and anticipated structural changes over the next 40 years.

The Intergenerational Report 2023: Australia’s future to 2063 was the first to include detailed modelling on the impact of climate change on Australia’s economy. This included new insights into the physical impacts of climate change over time, and analysis of how climate change could impact selected expenditure, revenue and exports.

Intergenerational reports are produced under the Charter of Budget Honesty Act 1998. They assess the long-term sustainability of current government policies. The Act requires the report to be produced every 5 years. The first one was released in 2002.

Find out more

Australian Government (2023) Intergenerational Report 2023: Australia’s future to 2063, The Treasury website, accessed 3 July 2024.

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