According a new study by Grattan Institute, Young Australians have not been able to find economic growth and stability the way their preceding generations could. And this may be also due to the policy choices made by Australia as a nation.
This generational gap, got broader with, the older proving to be richer than their younger counterparts. Due to halted wages, the new generation under 35 has barely moved or improved prospects since 2014, states the report. The older Australians, on the other hand are in a much better place after having crossed their prime income earning years and establishing themselves by this stage.
With an aging Australian population, health costs are increasing. As such better health policies from the government are expected. Conversely it is also observed, that the decline, much against expected is not due to Young Australians spending habit. The report reveals that more and more younger people are spending on non-essentials like alcohol.
The government policies that have been introduced to support the large aging population is working against the younger one. Tax policies over the last 30 years that includes, tax-free superannuation income in retirement, refundable franking credits, and special tax offsets for seniors have all resulted in Older Australians paying a lot less compared to the present. Added to this have been substantial increases in average pension and health payments for households over 65.
Enhancement of the structural budget position would benefit the younger Australian. This generation is also more consciously involved in environmental causes. A serious government intervention will place them in a better position to contribute to that. Aspects that making housing affordable will also immensely help them gain economic stability.