Quality of life, the environment and social harmony should be maintained as Australia's population grows, federal Treasurer Wayne Swan says.
The third intergenerational report released on Monday predicts that Australia's population will jump from 22 million at present to close to 36 million by 2050.
Asked about population pressures in parts of Australia, such as south-east Queensland, Mr Swan said growth needed to be sustainable.
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"What's most important to me isn't growth for growth's sake," he told the National Press Club in Canberra on Monday.
"It's the quality of life that we have, the sustainability of our environment and the social cohesion."
The report predicted a continuation of net overseas migration at an average rate of 0.6 per cent of the total population.
The population is projected to grow to 35.9 million in 2050, compared with an expected 22.2 million in 2010.
The federal government has launched a $43 million package to provide training and support for older Australians as a new report shows the burden of an ageing population by 2050.
The third Intergenerational Report shows that the proportion of Australians aged 65 and over is projected to almost double over the next 40 years.
As of now, there are five working-age people for every person aged 65 and over.
By 2050, the ratio will fall to only 2.7 people.
Supporting a larger population of older people is expected to result in government spending exceeding revenue by 2.75 per cent of gross domestic product (GDP) in 2049/50.
Around a quarter of total government spending is currently directed to health, age-related pensions and aged care.
The report projects this outlay will rise to around half by 2049/50.
"The report demonstrates just how critical it is to plan for the future, invest in productivity and participation, maintain fiscal discipline, and deal with dangerous climate change," Treasurer Wayne Swan said in a statement released with the report.
"Taking modest steps now means we can avoid the need for much more dramatic and painful adjustments in the future."
Mr Swan said the $43.3 million Productive Ageing Package will provide support to older Australians who want to stay in the workforce by investing in "quality job training" for mature jobseekers and support mature workers mentoring young Australians.
"We all benefit from the immense value that older Australians add to our workplaces and our economy, not just in terms of skills and work experience, but also life experience," Mr Swan said.
An ageing population means that living standards in the future will rise at a slower pace than over the past 40 years.
Economic growth per person is projected to grow at an average rate of 1.5 per cent per year over the next 40 years, compared with 1.9 per cent over the previous 40 years.
Average economic growth is expected to slow from 3.3 per cent over the past 40 years to 2.7 per cent in the future.
Over the next four decades, the rate of population growth is expected to slow to 1.2 per cent a year on average, compared with 1.4 per cent in the previous 40 years.
This reflects a broadly stable fertility rate of 1.9 births per woman and continuation of net overseas migration at an average rate of 0.6 per cent of the total population.
The population is projected to grow to 35.9 million in 2050, compared with an expected 22.2 million in 2010.
