Delivering a keynote speech at the launch of the latest intergenerational report in Melbourne on Monday, Josh Frydenberg said that while COVID has presented a number of challenges, “the speed of our recovery to date has exceeded all expectations”.
The latest report, which projects an outlook for the economy over the next 40 years, outlined three key points:
1. Australia’s population is growing slower and ageing faster than expected, impacting economic growth and workforce participation.
2. Australia’s economy will continue to grow but slower than previously thought and is dependent on productivity gains.
3. Australian debt is sustainable and low by international standards, however the ageing population will put pressure on revenue and expenditure.
In regard to productivity, Mr Frydenberg noted the government’s superannuation reforms, including the recent Your Future, Your Super legislation, as an important move.
“Those big bang reforms are one-offs. They cannot be repeated. Increasingly, reform is likely to be more incremental,” he said.
“Taking each and every opportunity to boost productivity, no matter how big or small, that’s my focus, that is the focus of the Morrison government.
“That is why we took the opportunity presented by COVID… to the superannuation system, the most significant since compulsory super came in in 1992.”
Mr Frydenberg’s comments come only weeks after Australia’s AAA credit rating was upgraded from negative to stable by S&P Global Ratings, who said at the time that “the government’s policy response and strong economic rebound have reduced downside risks to our economic and fiscal outlook for Australia”.
