Ageing a $36b hit to budget within a decade

Original article by Matthew Cranston
The Australian Financial Review – Page: 10 : 2-Apr-19

The Parliamentary Budget Office has predicted that Australia’s ageing population will see government revenue fall by around $20 billion within the next 10 years. This is due to reduced workforce participation, which results in less people paying tax; spending on the aged is tipped to rise by $16 billion over the same period. However, the PBO notes that immigration can help to offset the possible impact of ageing on the budget, as most migrants tend to be younger than the average, while they can boost the birth rate by increasing the number of people of reproductive age.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

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