Australians are projected to live significantly longer over the next 40 years, with women’s life expectancy approaching 90 and men’s reaching 86 by 2065–66. The Treasury says this will increase pressure on healthcare and government budgets, while doctors warn that longer lives must also be healthier, with greater emphasis on prevention and chronic disease.

Population growth is expected to slow to 0.9% annually, taking the population to 39.3 million—1.8 million below the 2023 forecast—largely because fertility rates are falling. Future debt is forecast to be around $500 billion lower than previously predicted, although Treasurer Jim Chalmers said major pressures remain and the outlook depends partly on productivity gains from technologies such as artificial intelligence; opposition leader Angus Taylor questioned the government’s assumptions.