Federal Treasurer Josh Frydenberg will release the five-yearly Intergenerational Report on Monday, a guide to how the Australian economy will perform over the next 40 years.

The IGR was first introduced in 2002 by former Liberal treasurer Peter Costello.

Shadow treasurer Jim Chalmers is already questioning how reliable the predictions will be, given former Liberal treasurer Joe Hockey’s 2015 version has proved “so spectacularly” wrong.

The 2021 report, the fifth in the series, is a year later than scheduled due to the pandemic.

A new analysis by Labor has found even before the pandemic, the 2015 forecasts have proved to be well short of expectations.

Australian Treasurer Josh Frydenberg
“I do think the economy will look different on the other side of COVID,” Josh Frydenberg says. Credit: AAP

As of December 2019 the economy was $91 billion smaller than predicted in 2015 with a cumulative loss of $201 billion in economic activity.

This underperformance equates to an average loss of $8,036 per person, it says.

“Having so spectacularly over-promised and underdelivered on their last Intergenerational Report, how can Australians trust Scott Morrison and Josh Frydenberg to live up to this one?” Dr Chalmers told AAP.

“After eight long years, Australians know the rhetoric never matches the reality.”

Shadow treasurer Jim Chalmers (file image)
Jim Chalmers says Australia can’t afford for the report to be another missed opportunity. Credit: AAP

He said the country can’t afford for this report to be another missed opportunity.

He said Australia’s rebound from last year’s recession has been built on the sacrifices of its people, and they deserve a recovery that works for everyone.

“This Intergenerational Report must offer the long-term thinking required to ensure our economy and society are stronger after COVID than before,” Dr Chalmers said.

“Without a comprehensive vision for economic reform and economic growth, living standards and incomes won’t perform any better over the next 40 years than they have in the last five to 10.”

Labor takes aim at Frydenberg’s forecasts
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