Why the Government’s intergenerational report misses the mark
The Federal Government’s projections for life in the next 40 years revealed in a report this week, are ambitious as they miss critical factors, says the Property industry peak body.
THIS week’s 2026 Intergenerational Report mistakenly assumes a “Hawke and Howard government mindset” over the next 20 years, says the Property Council of Australia.
The Council also believes the IGR was “too kind” in its forecasts of government spending and taxation.
The Report released by Treasurer Jim Chalmers estimates the outlook for the nation’s economy and federal budget to 2065–66.
PCA Chief Executive Mike Zorbas said the IGR’s projections reinforced the warnings of its predecessors.
But it failed to account for a growing burden of federal regulation and expanding government spending.
Government spending is expected to rise to 27.7 per cent of GDP by 2065-66, while personal income tax receipts will increase from 12.3 per cent to 14.1 per cent as traditional revenue sources decline.
“This report is solid, except where it kindly assumes we will have a Hawke and Howard government mindset, with modest Federal spending and an investment-friendly business environment,” Mr Zorbas said.
“When we write the history of the next 40 years, will we say we unleashed investment and grew the private economy, or did we fail to tackle big picture tax reform, all the while piling on new taxes on property investment?
“In 2026, we had five minutes of an ‘abundance’, pro-investment mindset in Canberra.
“Now, if the Albanese Government is not very careful, we are headed down the slope to Victorian Government-levels of tax and red tape.
“At the same time, personal income tax is projected to carry more of the load as government spending rises and traditional revenue sources decline.
“Imagine the challenge if a more populist or agrarian socialist set of national policy priorities came down the pipe.
“For the next 40 years, population growth will remain concentrated in our capital cities and urban centres, sustaining the need for substantial new private and institutionally funded property assets.
“Meeting that demand means backing the private businesses that deliver 97 per cent of Australia’s homes.
“With economic growth slowing and fiscal pressure continuing, the Federal Government and this Parliament as a whole must commit to productivity, private investment and growing the economic pie.”
