TRANSCRIPT
Australians have been given a snapshot of what the country will look like four decades from now, with the release of the sixth Intergenerational report.
The impact of climate change is a key feature of this year's report, and it's a grim reading.
It comes as another dangerous fire season approaches and parts of the nation are still recovering from devastating floods.
Treasurer Jim Chalmers says the report is a reminder that there is no time to waste when it comes to action on climate change.
"We can't be complacent about the future. And where that complacency could be the most damaging is when it comes to climate change. You know we've tried complacency on climate change and it's meant that we've wasted a lot of time."
If the world warms by more than two degrees, the damage to Australia's labour productivity could be up to 423-billion-dollars.
Labour intensive industries could be forced to stop work in the heat of the day.
Economist Cherelle Murphy says while the predictions are stark, measures to limit global warming can open up opportunities.
"Both negatives and positives out of decarbonizing our economy. When we think about our position in the world here, it's very important because clearly we produce a lot of the particularly rare minerals, which are necessary inputs to a decarbonized world. And we think about what the US is doing with its inflation reduction, expending a lot of money and encouraging businesses to decarbonize. We can play a part in that, that can enhance our export earnings and our commodity prices. So that's a big tick."
Australia's population is expected to reach 40 million people by the early 2060s, and the median age is expected to climb from 38 to 43.
As the nation ages, the income tax paid by workers collectively will shrink, meaning more pressure on health and aged care services.
Economist at the Committee for Economic Development of Australia Melissa Wilson says this makes forward planning imperative.
"We need to start now having those difficult and open and honest conversations about the challenges we are facing and the way forward and that should put everything on the table including the GST and the personal tax system so it remains progressive."
For young Australians, it's a bleak future to contemplate.
Despite a larger than predicted surplus for the last financial year, the intergenerational report forecasts budget deficits all the way through to 2063.
Opposition Treasurer Angus Taylor says the government should be focused on immediate cost of living realities.
"The truth of the matter is Australians right now, right across the board, not focused on 40 years from now they're focused on getting through the next 40 days or even the next 40 hours. This is a time where we have a cost of living crisis. And now he's giving us an intergenerational report that has deficits as far as the eye can see, but not a solution in sight. A future for Australia with more taxes, more spending and bigger Australia but no solutions to the challenges we're facing."
But Mr Chalmers has defended the government's forward-looking approach.
"If you don't have that sense of the future flickering within you. If you don't have that pilot light of purpose in you, then you have no business being in this line of work. I really believe that and if you don't have that pilot light of purpose, that little pilot light of purpose flickering in you, then you should get out of the way and leave it to people like the rest of us who do that."
The government has ruled out new major tax changes in this term.
But with a debate looming, Labor faces the potential to sustain a political burn.
