New Intergenerational Report warns of ageing Australia and economic headwinds

The seventh Intergenerational Report, released in 2026, paints a picture of Australia with roughly 40 million people in four decades, a demographic shift toward older age groups and a reliance on immigration to sustain growth. Treasury estimates indicate a growing national debt, an enduring budget deficit and likely higher tax burdens for the working population. Although the government hopes artificial intelligence will spark a productivity revival, a sizable contingent of economists remain skeptical.

The analysis links the country’s productivity slowdown to decades of insufficient infrastructure investment and under-investment by businesses. Wealth data show that older Australians have profited from a booming property market and expanding superannuation balances, while younger cohorts face stagnant or declining real wealth. In response, the May budget tightened property-investment tax incentives and pledged reforms to the superannuation system to help fund an ageing society.