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The Australian Treasury released a 2060s Intergenerational Report on Monday that projects deaths will outnumber births starting in the 2060s, contributing to a population growth rate that is expected to average 0.9% annually over the next four decades compared to 1.4% previously. Treasurer Jim Chalmers noted that the number of Australians aged over 85 would triple by 2066, increasing demand for health services and potentially leading to labour shortages in regions with older populations. The report highlights how aging demographics could strain healthcare systems and underscores the government's ongoing debate about immigration policies as they seek to address these challenges amidst economic pressures and political shifts.
Written locally by qwen2.5:14b on 2026-09-21,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Treasurer Jim Chalmers is set to release Australia's seventh Intergenerational Report (IGR) on Monday, forecasting that by 2066, Australia’s population will reach nearly 40 million people with longer life expectancies but lower fertility rates. The IGR outlines significant economic challenges due to an aging population and declining birthrates, emphasizing the critical role of migration in maintaining workforce growth.
Chalmers has hinted at potential further tax cuts for workers as part of his plan to address these long-term issues, suggesting that recent budget improvements have created room for additional relief. However, critics argue that while borrowing less than previously expected is positive, it does not equate to having surplus funds available for such measures without sustainable funding from spending restraint or alternative revenue sources.
The report also highlights the need for policy decisions today to prepare future generations for technological advancements like AI and to address geopolitical uncertainties in a more fragmented world. Prime Minister Anthony Albanese has been pushing for global cooperation on AI regulation during his visit to the United States, where he announced Siobhan McKenna as Australia's next Consul-General in New York, despite concerns about her past ties with News Corp. The announcements come amid efforts by the Australian government to secure a two-year term on the UN Security Council.
Written for “Australia's Economic Future Challenges” on 2026-10-05,
grounded in this article and the 18 other(s) covering the same event.
For the first time in the 2060s, deaths are projected to outnumber births in Australia, while annual population growth is expected to average 0.9% over the next four decades.
asserted
growth → project → decades
Lower fertility and declining net overseas migration are expected to contribute to the slowdown, according to the Australian Treasury's 2026 Intergenerational Report released on Monday.
uncertain
fertility → decline → Monday
That compares with average population growth of 1.4% a year over the previous four decades.
asserted
That → compare → decades
Net overseas migration — migrant arrivals minus departures — is projected to decline further before levelling off.
asserted
migration → project → ?
Treasurer Jim Chalmers said the number of Australians aged over 85 would triple by 2066, increasing demand for health services.
asserted
number → say → services
Labor introduced tighter immigration rules last week amid rising support for One Nation, which has called for steep reductions in immigration.
asserted
which → introduce → immigration
Prime Minister Anthony Albanese's approval rating also fell to its lowest level since he took office in 2022, Reuters reported.
asserted
Reuters → fall → 2022
For decades, migrant inflows have supported Australia's population growth despite persistently low birth rates.
asserted
inflows → support → rates
Japan, Germany and South Korea already record more deaths than births; Australia is projected to reach that point in the 2060s.
asserted
Australia → record → 2060s
Treasury's 40-year outlook is built around five major shifts: the artificial intelligence revolution, geopolitical fragmentation, the energy transition, aging and the care economy, and Australia's industrial transformation.
asserted
outlook → build → shifts
Future budgets could include further tax cuts.
uncertain
budgets → include → cuts
The government has also been providing cost-of-living support as households contend with elevated inflation, mortgage costs and expensive housing.
asserted
households → provide → inflation
Older regions could face care-sector labour shortages
An older population is expected to require more care services.
uncertain
population → face → services
Staffing pressures are projected to be greater in regions with older populations, particularly in healthcare and aged care, where migrant workers form an important part of the workforce.
asserted
workers → project → workforce