Australia’s policy challenges today are as significant as at any time in nearly half a century. The global landscape has changed since Australians last went to the polls. Geopolitical tensions have been rising, and the post-World War II global order is in decline.

In this report from e61 and UNSW, we highlight five economic themes that are likely to dominate the agenda in the next Parliament:

1. Negotiating a new global order: As the world moves away from a rules-based system that has underpinned Australia’s prosperity, Australia needs to adapt. Rather than turn inwards, Australia should leverage its comparative advantages, push back against a closed world, build flexibility in the domestic economy and find opportunities in the move to ‘friendshoring’.
2. Re-examining a high population growth model: Australia’s high population growth model has provided economic dividends, but it has faced political pressure. If immigration is to moderate, policymakers need to rethink how to manage domestic challenges it helped solve, including an ageing population and skill shortages.
3. Boosting productivity growth: The changing landscape make addressing the drivers of Australia’s recent productivity slowdown critical. This will also help address growing fiscal pressures.
4. Restoring fiscal sustainability: A balanced budget and low debt can help Australia weather global shocks and respond to emerging priorities.
5. Achieving a sustainable intergenerational bargain: Without addressing housing affordability and fiscal pressures, as well as improving productivity growth, Australia risks breaking the compact between generations. There is no guarantee younger generations will be better off than their parents and grandparents.