Chief Executive | Intergenerational Report tells us to expect more from our leaders

• 2063 population at 40.5 million.  
• +65s to grow from 12 to 18 per cent (7.4 million) 
• Like peer economies, lower Australian economic growth to 2063, from prior average of 3.1 per cent to 2.2 per cent (includes lower productivity growth – a direct hit on living standards) 
• Government spending to 28.6 per cent from 24.8 percent – imbalance of personal income tax over indirect taxes 
• Spending pressures include NDIS, aged care, health, defence and interest payments 
• Higher average interest rates in long term 
• Maintains twenty year avoidance of properly considering prosperity and productivity impact of poor planning for our cities 
• Assumes future Population Plan and Housing Accord will fix housing ills 
• Notes home ownership in 25-34 age group over 30 years to 2021 of 17+ per cent with negative age pension outcomes for 2063.

Pigeonesque, another Intergenerational Report (IGR) lands.

The IGR leaves its message on the statue of Australian public life and flies off for another five years.

Same pigeon.

Same message. We can’t afford our future.

We must try harder to preserve our relative national prosperity in the face of mounting structural challenges, some of which our governments can control if they choose to.

Little of the essential message has changed since Treasurer Costello’s seminal IGR in May 2002.

A growing, ageing population, higher costs, shrinking tax base.

Geopolitical, technological and climate changes are faster now and there is increased need for national action.

This time round our ancient, ill-fitting tax system – the cause of so much policy paralysis, unsustainable community outcomes and unmet needs – is front and centre. Good.

Only our governments say this reform is too hard.

So many of the challenges with growing our cities are made more difficult by our obsolete national tax system. Think laying out the welcome mat to overseas investment, proper land-use planning, and the adequate provision of full-spectrum housing that should underpin city productivity and social cohesion.

Reform is hard.

Talking about complicated good ideas is socially difficult. The fragmentation of modern politics makes it more so.

And yet there is one message we must take from the IGR. We need national tax reform that should start with a safety-netted higher rate of GST across all goods and services that replaces inefficient state and investment taxes.

We should back all parliamentarians willing to put their back into this.

It’s time to clean the statue.