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What-if scenarios

Hypothetical If current trends continue: Australia's population and ageing to 2050, compared with Japan

AI-generated hypothetical scenario based on official statistics. It is not a forecast and may not reflect what actually happens.

This hypothetical explores what could happen if Australia's low fertility and its current reliance on migration for population growth simply carry on to 2050. Today Australia is markedly younger than Japan: older people make up 18.09% of Australia's population in 2025, against 29.99% in Japan. Fertility has slipped to 1.48 births per woman in 2024, while population growth slowed from 1.98% in 2024 to 1.53% in 2025. Three paths show how ageing, labour supply and public services might evolve depending mainly on how strong migration stays. These are illustrations built on assumptions, not forecasts.

Hypothetical: fertility stays roughly where it is now, migration patterns broadly continue, and nothing dramatic changes in policy, health or the global economy through to 2050. The question is how Australia's population, its age structure, the supply of workers and demand for public services might shift, and how that compares with Japan, which is already much further along the ageing path.

Where things stand now (official data)

Mild: Migration keeps Australia comparatively young

Assumption · Fertility stays near today's low level, but migration remains strong and steady, bringing in mostly younger adults of working age. Growth stays close to the pace seen in 2025.

  1. 2025–2030Births stay low, with fertility hovering around 1.48 to 1.5. Population growth continues at a pace similar to 2025, driven mainly by arrivals from overseas.
  2. 2030–2035The older share keeps creeping up from around 18.09%, as the large baby boomer generation moves fully into retirement, but the inflow of younger migrants slows the shift noticeably.
  3. 2035–2040Cities keep expanding. Demand for housing, transport and schools in growing suburbs stays high, keeping pressure on rents and infrastructure even as the population ages.
  4. 2040–2050By 2050 Australia is older than today but still clearly younger than Japan was in 2025, when its older share stood at 29.99%. The workforce keeps growing, though more slowly than the number of retirees.

Effects in this path

  • Labour supply ▲ Rises
    The pool of working-age people keeps growing, easing labour shortages in many industries, though competition for jobs in some entry-level roles could increase.
  • Public services ◆ Mixed
    Aged care and health services face rising demand, but a growing tax base helps fund them more comfortably than in faster-ageing countries.
  • Housing and prices ▲ Rises
    Continued growth keeps housing demand strong, so affordability pressures in major cities are likely to persist.

Central: Steady ageing with slowing growth

Assumption · Fertility drifts slightly lower or stays flat, and migration continues but at a gradually softer pace than in 2024 and 2025. Population growth slows over time.

  1. 2025–2030The slowdown from 1.98% growth in 2024 to 1.53% in 2025 continues as a gentle trend rather than a one-off. Fertility stays close to 1.48.
  2. 2030–2035The older share rises faster than in the mild path, because fewer younger arrivals offset the growing number of retirees. Workplaces see more people retiring than starting each year in some sectors.
  3. 2035–2040Demand shifts from schools and maternity wards towards GP clinics, hospitals, home care and residential aged care. Regional towns with older populations feel this shift earliest.
  4. 2040–2050By 2050 Australia's age profile has moved a considerable way towards where Japan sits today, though it remains younger than Japan's 2025 level of 29.99%. Population still grows, but slowly.

Effects in this path

  • Jobs and wages ▲ Rises
    Labour supply grows more slowly, and employers in care, health, construction and trades compete harder for workers, which could push up wages in those fields.
  • Public finances ▼ Falls
    Health and aged care take up a growing share of public budgets, putting pressure on other spending or on taxes.
  • Everyday life ◆ Mixed
    Everyday life changes gradually: more grandparents caring for grandchildren, more adult children caring for parents, and more demand for accessible housing and transport.

Severe: Migration falls sharply and ageing speeds up

Assumption · Fertility keeps slipping below 1.48 and migration drops well below recent levels for a long period, for example because of global competition for workers or tighter settings. Population growth slows to a crawl.

  1. 2025–2030The fall in growth from 1.98% to 1.53% turns out to be the start of a steeper decline. With fertility at or below 1.48, natural increase alone adds very little to the population.
  2. 2030–2035The older share climbs noticeably faster than the step from 17.73% to 18.09% seen between 2024 and 2025, as retirees grow in number and few younger people arrive.
  3. 2035–2040Shortages appear in aged care, nursing and other services that depend on younger workers. Some regional areas see schools consolidate and local businesses close as younger residents move to cities.
  4. 2040–2050By 2050 Australia's situation begins to resemble Japan's in 2025, when nearly three in ten residents were older people, with the same debates about stretched services, automation and how long people work.

Effects in this path

  • Economy and labour supply ▼ Falls
    The workforce could stop growing or start shrinking in some sectors, limiting how fast the economy can expand and encouraging investment in automation.
  • Public services ▼ Falls
    Waiting times for care and health services could lengthen as demand rises faster than the number of available workers.
  • Prices ◆ Mixed
    Housing pressure may ease in some places as growth slows, but costs for care and services could rise because of labour scarcity.

Signals to watch

What this scenario cannot tell you

Data used

Australia fertility rate (births per woman)1.482024World Bank
Australia fertility rate (births per woman)1.52023World Bank
Australia population aged 65 and above (% of total)18.09%2025World Bank
Australia population aged 65 and above (% of total)17.73%2024World Bank
Japan population aged 65 and above (% of total)29.99%2025World Bank
Japan population aged 65 and above (% of total)29.78%2024World Bank
Australia population growth (annual %)1.53%2025World Bank
Australia population growth (annual %)1.98%2024World Bank

Source: World Bank, World Development Indicators (CC BY 4.0)

AI-generated hypothetical scenario based on official statistics. It is not a forecast and may not reflect what actually happens.