INTHEBLACK July 2026 - Magazine - Page 29
“The Scandinavian countries have had more success keeping
their fertility rates higher than elsewhere. That is partly
because there are good programs for supporting women
to go back into the workforce and there is very strong support
for the division between men and women looking after their
children. That can help to support higher fertility rates.”
PAUL BLOXHAM, HSBC
Permanent residential aged care
numbers increased by 3.4% in FY2025.
Source: KPMG
The Australian Government has
reduced its productivity assumption
forecast from 1.5% to 1.2%.
Source: Australian Treasury
as New Zealand at 1.85, China at 1.55
and Japan at 1.40.
“Australia’s relatively high rate reflects
a good social security system and a fairly
high migrant intake,” says chief economist
for Australia, New Zealand and global
commodities at HSBC, Paul Bloxham.
“On average, migrants tend to have more
children, in part because they often delay
the choice to have children until they have
migrated. Some Asian countries with
the lowest fertility rates are places like Korea.
Falling fertility rates are a demographic
feature that is happening across the world.”
Accordingly, many nations are taking
action to boost their fertility rates. In Japan,
the government is subsidising education
and maternity expenses. In 2025, China
raised its statutory retirement age for the
first time since the 1950s to combat an
ageing population and shrinking pension
pool. It is also making a US$25.8 billion
(A$35.6 billion) investment in out-of-pocket
birth expenses, even for IVF treatments.
SHIFTING FOCUS
Around the world, the birthrate decline
will influence the way accountants guide
clients, shape strategy and contribute
meaningfully to policy conversations.
From a financial advice perspective, the
focus must shift to longevity planning,
including retirement savings, healthcare
costs and intergenerational wealth strategies.
For more complex, multi-generational
families, it will be important to balance
the needs of older family members in
drawdown with younger family members
facing tax pressures and slower wealth
accumulation than earlier generations.
For accounting practices, workforce
planning and productivity will be priorities.
intheblack.cpaaustralia.com.au 29
