Australians set to live into their 90s as life expectancy forecast climbs over next four decades

Australia's Treasury will publish its latest intergenerational report on Monday, projecting the impact of government policy over the next 40 years. An extract released Sunday showed life expectancy at birth for women is forecast to reach almost 90 by 2065/66, up from about 86 currently, while men's life expectancy is projected to rise from 82 to 86 years over the same period.

Treasurer Jim Chalmers said the country's universal healthcare system and advances in medical research were the main drivers behind the rising figures. The report makes the case for continued investment in Medicare, the Pharmaceutical Benefits Scheme, and the recently rolled-out urgent care clinics.

Population growth slowing

The report also forecasts that Australia's population growth will slow to 0.9% annually over the next 40 years, down from 1.4% over the previous four decades. The population is expected to reach 39.3 million by 2065/66 — 1.8 million lower than projected in the 2023 report. Chalmers attributed much of the slowdown to declining fertility rates, noting that fewer women are having three or more children, partly because mothers are having children later in life. He pointed to government policies such as subsidised childcare, expanded paid parental leave, and higher mandatory superannuation contributions as measures intended to support families' choices.

Chalmers said artificial intelligence would become the defining influence on the economy over the coming decades, though he warned it also carries substantial risks that need to be managed. Projected government debt has been cut by half a trillion dollars compared with the 2023 report's forecasts, but much of that improved economic outlook depends on emerging technologies like AI. Prime Minister Anthony Albanese is visiting the United States this week to discuss a global framework for AI, calling on the US and China to cooperate in the interest of humanity, drawing a comparison to past international agreements on nuclear weapons.