Compiled every five years by the Australian Government, the Intergenerational Report details how Australia is changing, economically and demographically. It can be used by business, scientists, economists and governments to help understand how our nation is changing, and to help plan for the next 40 years.
Key challenges ...the report outlines two key challenges and opportunities facing our nation right now.
1. First, by 2055 the number of people aged 55 and over will double. At the same time, the ratio of potential workers to every older person is projected to nearly halve. That means fewer workers and less income for Australia.
2. Second, with the mining sector now levelling out, we need to consider which emerging industries and technologies can help us create a new and sustainable economy. And there's a huge opportunity for us to export our thinking and skills to Asia, the fastest growing region in the world, and across the globe.
Big challenges mean big opportunities. If we make the right decisions now, Australia could be standing on the threshold of its greatest era.
What this means to us ...
1. It is difficult to see taxes in one form or another being reduced. While there might be a shift to more broad-based consumer taxes i.e. GST – demand on our tax dollars will remain high.
2. Clients need to consider where they are positioned to take advantage of the changing demographics. For example, if you are not a direct exporter to Asia – is your business a "supporter" of that industry. For example Do you provide forklift services to an export based industry? If you are a farmer – is your product able to be exported and what is involved in marketing transport? Health practitioners – how do you support the increasing elderly population?
4. If your asset base is strong – consider "counter-cyclical" investment. Interest rates are at a very low level and if you have good assets and a strong cashflow, now is a great time to borrow and invest in active business. Remember "walk when others run and run when others walk".