A Set of Generational Accounts for Australia: Base Year 1994/95

Abstract

The baseline Australian generational accounts for 1994/95 presented in this paper reveal a moderate imbalance in favour of current generations, and thus a reversal of the imbalance evident in the 1990/91 base year accounts (Ablett, 1996a). However, alternative simulations suggest the fiscal constraint implied by recent official government projections should be sufficient to correct the generational imbalance of the baseline accounts. Generational accounting results involving several migration scenarios are also presented. These lend support to the view that migration has an overall net positive effect on government finances.