The intergenerational report – a four‑decade outlook on the nation’s economy and population – is scheduled for release on Monday. It will detail how the current budget lowered the tax burden on working‑age Australians and will outline the government’s view that further tax relief is feasible.
According to excerpts supplied by Chalmers’ office, the report will claim that the government’s tax reforms will “rebalance the tax system and reduce the tax burden on workers.” By the medium term, the share of personal income tax paid by workers is projected to be two percentage points lower than it would have been without the reforms, with a further decline expected as more property investment and capital gains become subject to the new settings.
The 2024‑25 budget introduced a $250 tax offset that will start next July and reduced the tax rate for those in the lowest bracket, measures the treasurer says were designed to ease pressure on households while improving the budget position and creating “more room for tax cuts into the future.”
Opposition treasury spokesman Tim Wilson criticised the reforms, arguing that cuts to negative gearing and the capital‑gains tax discount “kneecap” young Australians and will exacerbate the country’s biggest drop in living standards among advanced economies.
Beyond tax policy, the report will highlight demographic and technological trends that could shape Australia’s future. Fertility is forecast to fall to 1.34 children per woman by 2066, down from 1.48 today, reinforcing reliance on overseas migration for growth. Life expectancy is projected to rise to almost 90 years for women and 86 for men by the same date. Artificial intelligence is described as the “defining influence” on the economy over the next four decades, but the treasurer warned it also brings “very substantial risks.”
Independent economist Saul Eslake said the prospect of further tax cuts is “plausible” but cautioned that the report’s optimistic debt and deficit forecasts rest on “fanciful” productivity assumptions that may not materialise.
The release comes as the opposition‑led Coalition has pledged to cut fuel costs when global prices spike, a move the government has labelled economically irresponsible. Chalmers said the report will show serious economic and budgetary pressures but also “substantial advantages,” framing the upcoming speech as a call to balance immediate relief with long‑term planning.