Intergenerational Report’s long-term wellbeing signposts

• Intergenerational wellbeing that delivers inclusive opportunity requires integrated, holistic reforms
• Swift climate action to limit warming also provides opportunities for long term economic progress 
• Investment in early childhood will deliver generational benefits as well as lifting workforce participation 
• Focusing on prevention and early intervention will deliver better value than remedial spending on preventable problems 

Thursday 24 August 2023 – The Intergenerational Report released by Treasury today contains important signposts that the nation should heed to pursue long-term wellbeing, combat disadvantage and create opportunity for future generations, according to a leading independent policy institute. 

The report makes clear the urgency of a swift, just and orderly transition to net zero carbon emissions to limit global warming to 1.5 degrees, and the cost of inaction. 

It also indicates the need to seize economic and industrial opportunities in the net zero transition, which can increase Australian economic complexity and create new export industries to replace fossil fuels. 

With services costs expected to rise, it’s imperative that policymakers take an integrated, preventative approach that minimises the cost of remediating health, social and environmental problems that could have been prevented with earlier intervention. 

The report also demonstrates the critical importance of investing in the early years. Research – including 2021’s Starting Better report – models significant generational dividends from early childhood investment in the form of higher wages, better health, less crime, job creation and greater workforce participation. 

Centre for Policy Development CEO Andrew Hudson said the report indicated the need for long-term decision making to support multi-generational wellbeing. 

“It’s important to everyone in Australia that our leaders are making decisions for the long-term,” Mr Hudson said. 

“This report creates a transparent, accessible baseline from today’s policy settings, incorporates known future trends and provides policymakers with an important tool in crafting reforms. 

“The immediate lessons are that an integrated, holistic approach to policy and budgeting is needed to shift public spending from remediation to prevention. 

“Investment in the wellbeing of future generations through a guarantee for young children and families should commence before birth and continue to school age to deliver economic, social and educational benefits that last a lifetime. 

“It also makes clear that Australia must  decarbonise the economy to limit otherwise enormous human and financial costs of climate change.

“It also shows that government should seize the opportunity to make an early, significant investment in green industries to secure Australia’s place in the global post-carbon economy and replace fossil fuel exports.”

ENDS