An expert in public policy says Australia’s intergenerational reports could be improved. 

Australia's Intergenerational Reports (IGRs) have come a long way since their inception following the Charter of Budget Honesty Act of 1998. 

However, they are still beset with issues of objectivity and fail to incorporate comprehensive well-being metrics, according to a prominent Australian researcher.

A new article by Andrew Stuart Podger - a retired Australian senior public servant and currently Professor of Public Policy at the Australian National University - says the IGRs remain susceptible to political influence due to their issuance by the country's treasurer. 

To improve objectivity, Podger suggests exploring options like involving the Productivity Commission or the Parliamentary Budget Office, entities known for their independence.

He also says that expanding the IGRs' scope beyond the Commonwealth level to include state, territory, and local governments is crucial, especially in areas like health and disability support where responsibilities are shared. 

Improving technical aspects, such as offering more detailed sensitivity analysis for key assumptions, including migration, productivity, and workforce participation, can enhance the IGRs too. Additionally, considering various future scenarios and shocks, as done in New Zealand, would add value.

While focusing on fiscal sustainability, Podger says future IGRs should also spotlight Australia's financial challenges more effectively. They can delve into adjustments for both spending and revenue to ensure fiscal stability. 

Recognising the economic and social benefits of government expenditure is crucial, as is acknowledging that public spending can sometimes substitute private expenditure, contributing to GDP growth.

Podger says that the 2021 IGR failed to address within-generation inequality, which stems from assumptions and projections within the report. 

These include declining welfare benefits relative to community incomes, growing housing disparities, and the need to redirect superannuation savings towards genuine retirement incomes and consumption. Furthermore, climate change assumptions should be integrated into fiscal projections.

The full report is accessible here.