The sixth Intergenerational Report released by Treasurer Jim Chalmers on Thursday examines the social, economic, and demographic issues the country will face over the next 40 years.
Older Australians will make up one-fifth of the population by 2063. Older people will double, those over 85 will triple, and centenarians will grow sixfold.
Population growth will slacken from 1.4 to 1.1 per cent, putting pressure on finances due to more aged and health care spending.
The treasurer says it’s an opportunity for the care sector rather than a signal of an ageing economy. According to the government’s Intergenerational Report, Australia’s future implies longer lives, less work, higher incomes, fewer births, and greater reliance on vital minerals for economic robustness.
By 2062/63, real incomes and the economy will surge 50 per cent and 2.5 times, respectively.
The government already subsidises a range of aged care services, including home-based support and 24-hour care and accommodation through residential aged care.
Greek-Australian Gen Z and Millennials can’t rely on parents’ property
Greek Australians are ageing; the first generation of post-war immigrants are passing away, while others are accessing aged care services. The second generation is now in their mid-50s to 60s with an increased reliance on the care economy, including health services.
Greek Australians, like many other migrants, benefited from intergenerational wealth in the form of housing and land purchased by post-war Greek immigrants for a proportionally lower cost per income some 50 to 70 years ago.
Kosmos Samaras, Director at RedBridge Group Australia, and former Labor Victoria Deputy Campaign Director for Victoria expressed concern about the future of Gen Z Greek Australians.
He told Neos Kosmos that third-generation Greek Australians born here and in their 30s “have fewer children than older generations.”
“Through our research, we know that the lack of access to housing and growing levels of personal debt are the main reasons these Australians delay having children.
Samaras said an expanding migration program is needed to avert a “demographic crisis.”
“Without further migration, Australia will confront a demographic crisis where an ageing population places exponential pressure on an ever-decreasing number of younger working adults.
“Even with greater levels of family property wealth, Greek Australians in their 20s today will face a similar fate if this country does not resolve this intergenerational problem.
“The tax burden on all young Australians must be increased to accommodate an ageing population,” Samaras said.
The demographer and strategist said that second-generation Greek Australians, who were born in Australia and are now in their middle age, are facing the responsibility of taking care of their aging needs. With smaller families, many of them are single or with one or no children and are in their late 50s to early 60s. Consequently, their homes will serve as investments in their aged care.
On the other hand, the younger generations, Gen Z and Millennials of Greek Australian descent, have fewer siblings and limited access to property.
This situation leaves them less capable, able, or willing to care for their parents when they reach their 80s.
Aged care will need a bigger and more skilled workforce
The care and support workforce will need to double to meet the surging demands of an ageing Australia. At the same time, the Government spends roughly 40 per cent more as health, aged care, and NDIS payments increase from 6.2 per cent to 10.7 per cent of GDP.
Many economists may view an ageing population as an impost on government expenditure, however, Treasurer Jim Chalmers sees it as an opportunity.
“The better way is to focus on what we can do to make sure the investments we’re going to make in our workforce and the whole infrastructure of care,” he said in a speech to the National Press Club.
A thriving care sector will allow more women to work by reducing their informal care obligations to their loved ones, knocking down barriers to entry.
An extra two million carers will be needed by 2063 to meet demand.
Faye Spiteri OAM, Chief Executive Officer at Fronditha Care, one of the largest Greek age care providers, told Neos Kosmos that Fronditha Care “welcomes the opportunity to review the report in detail and make more informed comment.”
“There are several papers that the Australian Government has released regarding social services reform, which includes aged care services in companion to review of the Aged Care Act and the Multicultural Framework.
“This report needs to be considered in the context of these other proposed reforms to understand the full implications.”
Greek and Australian links through the diaspora can aid innovation
Bill Papasteriadis OAM, President of the Greek Community of Melbourne (GCM), told Neos Kosmos that the Intergenerational report was critical in helping policymakers “define the blueprint for Australia’s future.”
“Particularly the challenges associated with an ageing population, health, and productivity.
“From a Greek Australian perspective, there is an opportunity to enhance skills exchanges with Greece, particularly in community services and aged care.
He underscored Greece’s potential as a country with many skilled professionals, particularly in the care sector, health and education industries, and technology fields.
“It’s just no longer about one-way migration, as was the case in the 1950s. Migration is more fluid, and both countries can gain not from permanent migration, but rather measured exchanges.”
The President of the Greek Community of Melbourne said that Greece’s rapid advancements and engagement in the technology space, renewable energy, and health, especially with countries like Israel, must be considered to expand relations with Australia.
“Greece is advancing dramatically in tech and health in its exchanges with nations such as Israel, and this level of innovation would provide enormous benefits to Australia given the Treasurer emphasised innovation,” Papastergiadis said.
According to Treasurer Jim Chalmers, innovation is a crucial aspect in an economy reliant on services and looking to meet Net-zero emissions. Climate change will elevate disaster spending threefold. Net-zero emissions will dent coal exports but lift demand for essential minerals.
Amidst electric vehicles and reduced smoking, fuel and tobacco levies, revenue will dip. Workforce participation will shrink from 66.6 per cent to 63.8 per cent, while productivity gains 1.2 per cent yearly. The report also underscores the need for economic reform, prioritising productivity for forthcoming generations and adapting tax measures.