Australian political activist Drew Pavlou has sparked debate with a recent social media post, asserting that high taxation on young people to fund pensions for older generations constitutes a "civilisational death wish." The tweet, posted by Pavlou, specifically targets the perceived disparity where younger Australians face significant tax burdens while "Boomers" are described as owning "4 million homes."
"No retard, forcing young people to pay 50% taxes to pay pensions for Boomers who own $4 million homes is communism. It’s actually worse than communism in many ways, it’s just a straight civilisational death wish, boomer suicide “After Me The Flood” thought. No one will ever have children," Pavlou stated in the tweet.
Pavlou, known for his confrontational activism and criticism of the Chinese government, founded the Drew Pavlou Democratic Alliance and has previously run for the Australian Senate. His commentary frequently addresses issues of social justice and government policy, often through provocative online statements.
Australia is currently experiencing a significant intergenerational wealth transfer, with an estimated A$3.5 trillion in assets expected to shift from older to younger generations by 2050. While this transfer primarily occurs through inheritances, concerns persist regarding the equitable distribution of wealth and the tax implications, particularly as Australia does not have a formal inheritance or wealth tax.
The Australian pension system, primarily comprising the Age Pension and compulsory superannuation contributions, aims to provide retirement income. The Age Pension, a government-funded, means-tested payment, supports a large proportion of older Australians. Despite an aging population, projections from the Super Members Council indicate that Australia's spending on government-funded pensions is expected to fall as a percentage of GDP, partly due to the growing self-funded superannuation system.
However, Australia's total fertility rate reached a record low of 1.58 births per woman in 2022, well below the replacement level of 2.1. This sustained low birth rate, combined with increasing life expectancy, contributes to an aging population. The Productivity Commission's 2023 Intergenerational Report projects that the share of Australians aged 65 and over will increase from 17% to 23% by 2063, potentially leading to slower economic growth and increased pressure on government budgets for health and aged care.