The APPSIM Project
Australias population is rapidly ageing. The proportion aged 65+ is projected to increase from 15% now to 35% over the next 40 years. This population ageing is expected to have major consequences for Australian society and its economy and for the Commonwealth Governments budget.
Treasurys 2002 InterGenerational Report suggested assuming current policy settings there would be a shortfall between Commonwealth government revenue and outlays of 5% of GDP by 2042. In todays dollars, this would translate into a budget deficit of about $40 billion.
This Australian Research Council Linkage project (LP0562493), Assessing the Social and Fiscal Policy Implications of an Ageing Population is a five year collaboration between NATSEM, the University of Canberra, two international researchers and 13 industry partners. Its aim is to develop a model that will give the Commonwealth Government the capacity to assess the future distributional and revenue consequences of changes in tax and outlay programs. The model is called APPSIM Australian Population and Policy Simulator.
