• Deaths in Australia are projected to outnumber births by the 2060s for the first time.
• The population growth rate is expected to slow to 0.9% annually over the next four decades.
• By 2066, the number of Australians over 85 will triple, increasing demand for healthcare services.
• The government's recent immigration restrictions are sparking debates on population management.
• AI and productivity gains are seen as potential mitigators of economic challenges related to the ageing population.

Australia is projected to experience a significant demographic shift by the 2060s, with deaths expected to exceed births for the first time, a scenario already faced by advanced economies like Japan and Germany. The country's population growth rate is anticipated to average 0.9% annually over the next four decades, compared to 1.4% in the past four decades, as reported in the latest Intergenerational Report by Australia's Treasury. This change is largely attributed to declining birth rates and reduced net overseas migration, the latter being a critical factor for demographic resilience in the country, according to Channel News Asia and India Times.

Projected data suggests that the number of Australians aged 85 and older will triple by 2066, leading to increased demands on healthcare services. Areas with older populations could face significant labor shortages, particularly in healthcare and aged care, where migrant workers form a substantial part of the workforce. The aging demographic emphasizes the need for a sustainable immigration policy, particularly for skilled migration, as highlighted in the report, according to Al Jazeera and India Times.

The recent tightening of immigration rules by the Labor government, aimed at mitigating a surge in support for right-wing parties like One Nation advocating significant immigration cuts, adds complexity to the debate on Australia's population management. Prime Minister Anthony Albanese's approval ratings have reportedly fallen to their lowest since taking office, signaling potential political ramifications tied to these demographic challenges, as noted by India Times and Channel News Asia.

As Australia prepares for an increasing ratio of older to working-age individuals—projected to rise from roughly 29 older people for every 100 working-age individuals today to approximately 39 by 2066—the implications for social services, healthcare, and economic productivity become more pronounced. The Treasury’s report underscores that while traditional growth may slow, advancements in artificial intelligence and productivity could provide crucial economic support, remarking on the substantial challenges faced by the economy amidst these demographic shifts, as stated by Al Jazeera and India Times.