# Australian treasury forecasts life expectancy near 90 and AI as defining influence

Digest AI · Policy & Regulation · published 2026-09-20T04:32:26Z

Canonical: https://digestai.news/story/australian-treasury-forecasts-life-expectancy-near-90-and-ai-as-defini

## Summary

The Treasury’s intergenerational report projects Australian women will live to almost 90 years by 2065/66, up from about 86 today, while men’s life expectancy is expected to reach 86 years, up from 82.  The forecast also shows the nation’s population will be about 39.3 million by 2065/66, a slowdown to 0.9% annual growth and 1.8 million fewer people than the 2023 projection.  Treasury chief Jim Chalmers attributes longer lifespans to universal health care, Medicare, the Pharmaceutical Benefits Scheme and new urgent‑care clinics, while noting an ageing population will pressure future budgets.

Chalmers said AI will become the “defining influence” on the Australian economy over the next four decades, bringing “very substantial risks”.  He highlighted the need for policies that maximise productivity gains while managing those risks.  Prime Minister Anthony Albanese, on a U.S. visit, called for a global AI framework involving the United States and China.  In contrast, U.S. President Donald Trump said he would appoint an AI tsar and create an “AI Force”, dismissing AI fears as a “hoax”.

## Key points

- Women’s life expectancy forecast to reach almost 90 years by 2065/66, up from about 86 now
- Men’s life expectancy forecast to reach 86 years by 2065/66, up from 82 now
- Treasury says AI will be the defining economic influence over the next four decades, with substantial risks

## Why it matters

Longer lifespans will reshape health and pension spending, while AI’s projected central role signals major policy and economic shifts for Australia.

## Sources

1. [More Australians to live into their 90s as life expectancy forecast to rise over coming decades](https://theguardian.com/australia-news/2026/sep/20/intergenerational-report-australian-life-expectancy-forecast-to-rise) (The Guardian AI, 2026-09-20)

## Cite

Digest AI, "Australian treasury forecasts life expectancy near 90 and AI as defining influence", 20 September 2026, https://digestai.news/story/australian-treasury-forecasts-life-expectancy-near-90-and-ai-as-defini

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