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Australian Government Coat of Arms

Budget | 2015-16

Budget 2015-16
Australian Government Coat of Arms, Budget 2015-16

Preparing for future challenges

The Intergenerational Report shows that we need to focus on reforms to enhance productivity and participation, and repair the budget to continue to provide the services that Australians expect

Australia’s strong economic performance over the past 40 years has greatly enhanced our standard of living.

But, continued economic growth and prosperity cannot be taken for granted.

The 2015 Intergenerational Report projects that the Australian population will grow and change in the next 40 years. Australians will live longer, and the number of Australians aged 65 and over will increase as a proportion of the population.

Improving Australia’s economic performance and living standards in the future will depend crucially on productivity growth—that is, working more efficiently and effectively. We must also find ways to boost the number of people participating in the workforce.

The 2015 Budget recognises the changing shape of Australia and sets us up to take advantage of the opportunities this presents.

This Budget is about taking action now. Measures to support small business innovation and increase participation with better child care will drive our future prosperity.

Continued progress on budget repair will ensure we are better placed to meet whatever challenges the future may bring.

Productivity will be a more important driver of economic growth in the future
The chart shows the annual average contribution to the growth of real GDP per person from the share of the population over 15, the participation rate, the unemployment rate, average hours worked and labour productivity over the past 40 years and the next 40 years.  Over the next 40 years labour productivity growth of 1.5 per cent is shown to be the key contributor to real GDP per person growth of 1.5 per cent.