Australia faces significant intergenerational challenges.
Population ageing will mean that there will be fewer workers to support retirees and young dependants.
This will place pressure on the economic growth that drives rising living standards.
At the same time, the ageing population will result in substantial fiscal pressures from increased demand for government services and rising health costs.
Australia's population will continue to grow over time but at slower rates
than in the past. A growing population will help manage pressures of the ageing population but will put pressure on our infrastructure, services and environment. This will require continued planning and investment ahead of time.
Climate change is one of the most significant challenges to Australia's long-term economic sustainability. Australia will be one of the countries hardest and fastest hit.
Climate change threatens living standards through its impact on the environment and on the economy.
Australia's ability to meet these future challenges depends on actions taken today.
Small adjustments now – to grow the economy by increasing productivity and participation, restrain unsustainable growth in spending, plan for future demographic change and tackle climate change – will prevent the need for much sharper and more costly adjustments in the future.
These are difficult challenges, but not beyond us if we continue to put in place policies to address them now.
Ageing is a challenge for future economic growth – the proportion of the population aged over 65 years is increasing