Australia ‘needs’ more investments to underwrite future

The Actuaries Institute also advocates for equitable super changes.

The Actuaries Institute said in a statement that it supports the Federal Budget's cost-of-living relief and equity measures but urges more investment to boost the artificial intelligence (AI) economy and address climate change. 

Regarding the cost of living and equity measures, the institute welcomes increased Commonwealth Rent Assistance and reductions in income tax and tertiary education debt, Actuaries Institute CEO Elayne Grace commented.

As noted in the institute's report "Not a Level Playing Field," safeguarding income and intergenerational equity is crucial and requires intentional policy to prevent worsening inequality.

On climate adaptation and transition, the institute appreciates the substantial public funding, investment incentives, and support for disaster resilience, climate adaptation, and clean energy transition. 

"But we reiterate a significant uplift in public sector investment is required, as well public-private sector partnerships, to close the adaptation finance gap. To manage the uncertainty around climate adaptation and transition, the government should accompany these policy and investment programs with rigorous, highly transparent monitoring frameworks. We need to regularly review the success of adaptation and transition measures and stay agile,” Grace said.

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Concerning AI, it offers immense opportunities for Australians but also poses risks if misused. 

The institute supports the $40m funding announced to prepare for and embrace AI technology but emphasises the need for greater investment and policy clarity to secure Australia’s digital future.

For the retirement system, the institute welcomes the inclusion of superannuation in the government’s Paid Parental Leave scheme but urges the government to consider changes to superannuation and retirement income tax settings to ensure a fair and sustainable system. 

With an ageing population, a national longevity strategy that integrates health care, aged care, the Age Pension, and superannuation systems is essential to help Australians live with dignity in retirement.