Australia has a future filled with great potential. That great potential, however, is not guaranteed: work needs to be done to ensure it is achieved. Australian governments have breezed through history on a bit of a wing and a prayer, without much in the way of preparedness or strategy when it comes to population-related matters. Luck has had a lot to do with the nation’s success.
Preparedness and responsiveness are integral to the future of the nation in maximising the potential of Australia and its people. It is people, after all, who form the foundation of our society. The myriad risks confronting us—from economic recession and inequality to environmental crisis—require urgent actions to safeguard the nation’s wellbeing.
This chapter considers how population policy and demographic drivers can help to ensure Australia is a socioeconomically strong, fairer and sustainable society for future generations. The challenges of the future posed by the nation’s demographic composition will be best transformed into opportunities via a coherent and connected suite of policies aimed at investing in appropriate immigration, education and training, and gender equality.
Contemporary context: Challenges and opportunities
Australians are living longer and having fewer children than ever before. A baby born today can expect to live to around the age of eighty-three years,1 and on average women have 1.7 children;2 this is about an additional eleven years of life and approximately one fewer child per woman than fifty years ago.3 Australia’s gains in increasing life expectancy at birth, and gender equality momentum in education and employment, have resulted in a population structurally ageing and not replacing itself.4
Below-replacement-level birth rates (of around 2.1 births per woman) and a population growing increasingly older are not problems in and of themselves; rather, the adverse consequences they present the future of Australia are substantial. We are faced with a real risk that the socioeconomic wellbeing of the nation may go backwards. The trouble with an ageing population that is not replacing itself is that insufficient numbers of people are entering the workforce to replace those retiring. In the immediate future, Australia will need enough people to fill around 600,000 jobs,5 which is well in excess of the potential numbers of locals entering the workforce. The pool of people in the workforce is a crucial means by which the government can fund the everyday functions of essential services and vital infrastructure. The proportion of Australians aged sixty-five and over is expected soon to represent around a fifth of the population. Our population is rapidly ageing, with the proportion of people aged 65+ in 2038 expected to be more than double the rate of 1998.6 It sounds crude, but without sufficient numbers of people in the workforce paying individual income tax, Australia’s future generations risk lower standards of living than those to which the nation has become accustomed.
Our demographic prospects also pose great challenges to existing social equality, with the potential for inequalities to deepen if those in the workforce are not sufficiently supported to do the things traditionally believed to underpin the great Australian dream: to buy a home and settle down. Settling down might also include having children—the basis upon which the future of Australian society is formed—and perhaps one day retiring. Home ownership, family and retirement may prove to be far too difficult for younger generations. The fact that home ownership is declining swiftly, particularly for younger people and those with young children, is especially troubling in the context of greater insecurity in employment.7 The sad reality for too many young Australians is that it takes the Bank of Mum and Dad (or their death) to break into the housing market. Meanwhile, tax incentives are given to property owners to buy multiple properties, increasing the proportion of investors to owner-occupiers, meaning renters are effectively funding property speculation.
Sitting alongside these socio-demographic challenges are the risks posed by climate change. The uncertainty of the social and economic future of the nation is compounded by the uncertainty of what lies ahead, especially pertaining to the vital non-renewable resources required to sustain life. The interdependent connection between the nation’s demographic future and climate change is evident in the real fear of the future evinced by those embarking on parenthood, many of whom are limiting their family size or deciding not to have children at all. Fewer children in a below-replacement demography means less economic capacity to fund the technologies and innovation required to meet the immense challenges of climate change.
Australia has limited choices to prepare for the future if the nation is to be best placed in the global community, and ensure fairness and sustainability in our domestic economy. The actions required are pretty simple, really, but it will take hard work to enact them. Fortunately, we can look to past successes in preparing for the future. In fact, opportunities can be made of the challenges confronting us. We have the opportunity to make world-leading strides in the area of climate change, particularly concerning emissions.
A common factor to making opportunities of both our demographic and sustainability challenges lies in immigration. Immigration as a means to ensure socioeconomic strength, fairness, and sustainability for future generations comes down to the safety net migrants deliver to the nation’s economic bottom line. Migrants provide the necessary economic stimulus for Australian governments across all jurisdictions to afford the needs of the nation. A population policy can help safeguard the education and skills needs of the future as well as provide the people power required to help ease the work-life pressures on parents (especially mothers).
Planning for a fair and sustainable future
Every single one of us has a stake in the future of the nation. In order for the country to meet its potential and the needs of its citizens, active population policy is essential. A cohesive plan for Australia’s future population has the potential to bring together the necessary pieces of the population policy puzzle to strike the required balance. A population plan will not be easy: it will require commitment and hard work. Ideology might pose the greatest problem in advancing a fit-for-purpose plan.
The National Cabinet, established during the COVID-19 crisis, offers a good basis on which to build and advance a population plan. The need to secure Australia’s future wellbeing is one thing upon which we can all agree; a plan for the future could be formed initially on a mission statement of sorts. Concrete policy actions could then be built from the basis of a broad statement of common goals. The act of setting out common goals would allow for public transparency and accountability.
The purpose of a population plan for Australia is not about setting numerical targets of size and growth, and certainly not about imposing limits; rather, it requires us to identify the necessary supports and mechanisms for achieving socioeconomic wellbeing, fairness and environmental sustainability. These fall into three parts: the policy action, the purpose of that action, and the elements of implementation.
A cohesive population plan for Australia8
To secure a fair and sustainable future, Australia must rely on planning, not luck. We cannot afford to just wing it and hope for the best. A comprehensive and cohesive population policy could help prepare for, and respond to, the needs of the nation. At the very least, developing and articulating a clear vision for the nation would help to ensure that our future prosperity is shared by all. We have nothing to lose, and much to gain.