Pittwater LIfe December 2019 Issue

Bowen’s solution of course
was to arrogantly propose to
tax the life out of the Boomers
all the while appealing to
later generations, ultimately
something that the electorate
just didn’t buy into.
Walker in The Sydney
Morning Herald article
mentioned above concludes:
“OK, Boomer; it’s time to yield
some ground.” But in doing so,
Walker, like Bowen, discount
the impact of time on all
generations.
The following comments
about the extension of lifetime
milestones are from a brief
published by the ARC Centre
of Excellence in Population
Aging Research in November,
2019: “Longer median lives
are, in turn, associated with
longer adolescence and later
ages of leaving studies and
starting work. For example,
the median age of starting
any work was 16 in 1966, but
18 in 2016; and the age of
starting full-time employment
increased from age 16 to age
25 over the same period. Also,
as is well documented (e.g.,
ABS 1994), the typical age at
which women first become
mothers increased by eight
years over the last 50 years.
Marriage, which is associated
with new household formation
increased by 4 years, to
age 31. The potential delay
in house purchase sits in
this context. In fact, house
purchases were made later
in life in the 1960s (age 27),
compared to the 1970s (age
24), before homeownership
become more widespread. The
typical age at which people
become homeowners has
since shifted by 9 years, from
24 to 33. The typical age of
paying off the mortgage has
also been deferred, from age
52 to age 62. While the typical
age at which Australians leave
the labour force has surged
by four years just since 2001,
to age 64, the rate of increase
has not matched changes in
other life events. In fact, it
may need to increase further
to accommodate later home
purchases and delayed
mortgage repayments.”
The ARC research can be
interpreted in many ways. Part
of the research that seems
to attract most attention is
dedicated to an argument
calling for the re-introduction
of death duties as a means
of improving the lot of
pensioners who rent.
But before we go proposing
an array of policy solutions
to address the ‘problem’
of the Boomer generation
relative to those that follow,
we may want to be sure that
improvements to health,
education and technology
are not playing out as the
research suggests to delay
many of life’s milestones.
That’s the first impact of
time on our generations. The
second impact of time is
very straightforward – the
first Boomers will reach their
life expectancy targets in
approximately 2033 and the
wealth will start to spill over
to the second and subsequent
generations.
Ultimately war between the
generations is quite pointless,
as time will fix all.
Business Life
The Local Voice Since 1991
Brian Hrnjak B Bus CPA (FPS) is
a Director of GHR Accounting
Group Pty Ltd, Certified
Practising Accountants. Offices
at: Suite 12, Ground Floor,
20 Bungan Street Mona Vale
NSW 2103 and Shop 8, 9 – 15
Central Ave Manly NSW 2095,
Telephone: 02 9979-4300,
Webs: www.ghr.com.au and
www.altre.com.au Email:
brian@ghr.com.au
These comments are of a
general nature only and are
not intended as a substitute
for professional advice.
DECEMBER 2019 55