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Economic Implications of an Ageing Australia


  • Productivity Commission


The commissioned study into the ageing of Australia’s population was released April 2005. The Commission found that one quarter of Australians will be aged 65 years or more by 2044-45, roughly double the present proportion. This gives rise to significant policy challenges. The Commission maintains that policy responses would have to be broad and at all levels of government. Policy measures will be needed to reduce the fiscal pressure from ageing and/or to finance the fiscal gap. Reforms would be needed in key human service areas, such as health and aged care, where the pressures of an ageing population will impact most. The resulting fall in labour force participation would also need to be addressed. The Commission shows that raising labour force participation and productivity can partly offset the impacts of an ageing population. These would enhance income growth, helping to sustain economic growth and living standards, and increase the capacity to ‘pay’ for the costs of ageing, as well as through taxation.

Suggested Citation

  • Productivity Commission, 2005. "Economic Implications of an Ageing Australia," Labor and Demography 0506001, EconWPA.
  • Handle: RePEc:wpa:wuwpla:0506001
    Note: Type of Document - pdf; pages: 470

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    Cited by:

    1. Braun, Sebastian & Friedl, Andreas & Groll, Dominik & Bachmann, Ronald & Giesecke, Matthias & Kramer, Anica & Paloyo, Alfredo & Sachs, Andreas, 2012. "Demografie und Wachstum: Die gesamtwirtschaftlichen Effekte einer höheren Erwerbstätigkeit Älterer. Gutachten im Auftrag der Initiative Neue Soziale Marktwirtschaft (INSM) GmbH. Endbericht," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72614.
    2. Garry F. Barrett & Yi-Ping Tseng, 2008. "Retirement Saving in Australia," Canadian Public Policy, University of Toronto Press, vol. 34(s1), pages 177-193, November.
    3. Creedy, John & Guest, Ross, 2008. "Changes in the taxation of private pensions: Macroeconomic and welfare effects," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 693-712.
    4. Creedy, John & Guest, Ross, 2008. "Population ageing and intertemporal consumption: Representative agent versus social planner," Economic Modelling, Elsevier, vol. 25(3), pages 485-498, May.
    5. Prosser, Brenton & Clark, Shannon & Davey, Rachel & Parker, Rhian, 2013. "Developing a public health policy-research nexus: An evaluation of Nurse Practitioner models in aged care," Evaluation and Program Planning, Elsevier, vol. 40(C), pages 55-63.
    6. Hielke Buddelmeyer & John Freebairn & Guyonne Kalb, 2006. "Evaluation of Policy Options to Encourage Welfare to Work," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 39(3), pages 273-292, September.
    7. Giuseppe Carone, 2005. "Long-Term Labour Force Projections for the 25 EU Member States:A set of data for assessing the economic impact of ageing," Labor and Demography 0512006, EconWPA.
    8. repec:eee:hapoch:v1_713 is not listed on IDEAS
    9. Andrew D. Colegrave, 2006. "Why Study at a Mature Age? An Analysis of the Private Returns to Universtity Education in Australia," Economics Discussion / Working Papers 06-11, The University of Western Australia, Department of Economics.
    10. Kudrna, George & Woodland, Alan, 2011. "An inter-temporal general equilibrium analysis of the Australian age pension means test," Journal of Macroeconomics, Elsevier, vol. 33(1), pages 61-79, March.
    11. Y. TAMSAMANI, Yasser, 2017. "L’évolution des dépenses de santé au Maroc : une analyse des déterminants démographiques et macro-économiques
      [The Evolution of the Health Expenditures in Morocco: A Demographics and Macroeconomics
      ," MPRA Paper 83996, University Library of Munich, Germany, revised 18 Jan 2018.
    12. Joe Hirschberg & Jenny Lye, 2013. "Gambling with Stimulus Payments: Feeding Gaming Machines with Federal Dollars," Department of Economics - Working Papers Series 1166, The University of Melbourne.
    13. John Creedy & Ross Guest, 2007. "Changes in the Taxation of Superannuation - Macroeconomic and Welfare Effects," Department of Economics - Working Papers Series 986, The University of Melbourne.
    14. Rebecca Cassells & Ann Harding & Simon Kelly, 2006. "Problems and Prospects for Dynamic Microsimulation: A review and lessons for APPSIM," NATSEM Working Paper Series 63, University of Canberra, National Centre for Social and Economic Modelling.

    More about this item


    ageing; health; aged care; labour force; labour supply; economic growth; policy measures; productivity; demographic trends;

    JEL classification:

    • H - Public Economics

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