The next generation of Australians could well be the first not to enjoy a better lifestyle than those before them. That is the finding of a new report by the global report company Ipsos, which also suggests home ownership is becoming an increasingly difficult dream...
The second instalment of a white paper entitled Australia Today shows one in three parents believe, in the Australia of tomorrow, their children will face a lesser standard of lifestyle. The survey of more than two thousand Australians has been commissioned by the National Australia Bank's wealth-management partner, MLC.
It looks at how the cost of living will impact future generations as Australia enters a new economic phase. MLC's general manager of corporate super, Lara Bourguignon says confidence is lagging.
"In Australia, we've had 20 years of economic prosperity driven by the mining boom, and I think people understand that the mining boom's over. We haven't quite worked out, with any level of confidence, where the next wave of growth in the economy is coming from," said Bourguignon.
The lack of certainty underpins the lack of confidence found in the report. It estimates almost two-thirds of parents believe their children will never own their own home.
In Sydney, 25-year-old Dallas Proctor says, at his current rate of saving, it will take him between eight and 12 years just to save up a deposit.
"People are angry, I think, because there are such obvious policy changes that could be made to increase equity between generations. If you look at things like negative gearing, like means-testing their family home and pension-asset test, if you look at the capital-gains tax exemption, there's so many things that could be done that could really make a huge difference and start to redistribute the wealth down to younger generations."
Lara Bourguignon, from MLC, says the previous generation could be setting a higher bar for standard of living than the last generation, too.
"I think back sort of 20, 30 years ago. Really, it was having access to education, a home and good healthcare. Today, a comfortable standard of living includes an overseas trip every other year, private-school fees, all of the latest modern conveniences in the home."
