Under Australia’s business-as-usual scenario, the dependency ratio will deteriorate somewhat until 2050 (probably to around 0.65 from today’s level of 0.48), but it will not nearly be as dramatic as in Europe or Japan, where it could be above 1 by then.
So far, Australia has its population debate the wrong way around. It is not population growth that will be the developed world’s biggest worry over the coming decades, but population decline.
As one of the very few rich countries that still has a young and growing population, Australia should embrace this opportunity and continue to grow. Other countries may well abolish themselves but Australia should not.