1. kpmg Apollo Bay AHIA National Conference 2005 An Ageing Australia Implications of demographic change for the health industry Bernard Salt Author The Big Shift Partner KPMG Australia 10 November 2005

2. © 2005 KPMG, an Australian partnership, is part of the KPMG International network. KPMG International is a Swiss cooperative. All rights reserved. The KPMG logo and name are trademarks of KPMG. kpmg Aussies slide towards natural decrease 1960197019801990200020102020203020402050 Recession Baby Boom 1975 crisis Fertility decline Boomers die off 2035 Natural decrease 1988 8.5 19.4 25.4

3. © 2005 KPMG, an Australian partnership, is part of the KPMG International network. KPMG International is a Swiss cooperative. All rights reserved. The KPMG logo and name are trademarks of KPMG. kpmg Singles beat off couples and families  Mum, Dad & the Kids has been the leading social structure at the household level in Australia for several decades  By 2011 the traditional nuclear family loses supremacy as the dominant household type (to couples)  By 2021 ‘families’ and couples are eclipsed by singles – who then pull ahead in 2020s Net growth (000) 1991200120312001-2031 Singles2024311,628 Couples2426291,295 One-parent family101111410 Mum, Dad & the Kids413324167 Group households54386 Other family11112 Households6.4507.78911.5803.791

4. © 2005 KPMG, an Australian partnership, is part of the KPMG International network. KPMG International is a Swiss cooperative. All rights reserved. The KPMG logo and name are trademarks of KPMG. kpmg 0901020304050607080 ChildTeenOld Age Adult 71 1968 ChildAdultOld Age 63 1928 Source: ABS 2003a, 3302.0, 3102.0, 3222.0; Australia’s Health 2004 (AIHW) Boomers redefine 50-something ChildAdolescenceAdultLifestyleOld 81 2008 Retired

5. © 2005 KPMG, an Australian partnership, is part of the KPMG International network. KPMG International is a Swiss cooperative. All rights reserved. The KPMG logo and name are trademarks of KPMG. kpmg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 194619511956196119661971197619811986199119962001200620112021203120412051 Year Population Baby boomers just won’t die … they will soon influence national budgets Source: ABS Censuses; ABS Series B Projections September 2003

6. © 2005 KPMG, an Australian partnership, is part of the KPMG International network. KPMG International is a Swiss cooperative. All rights reserved. The KPMG logo and name are trademarks of KPMG. kpmg It doesn’t get any better after 43-48 … Boomers at their peak until June 2006 … then the slide begins

7. © 2005 KPMG, an Australian partnership, is part of the KPMG International network. KPMG International is a Swiss cooperative. All rights reserved. The KPMG logo and name are trademarks of KPMG. kpmg Retirement now … and next decade Born pre 1939 Now aged 65+ Great Depression & WWII Frugal by nature Quite like the term “Senior Citizen” “Content” and “happy” in retirement Most make their exit by 2020 … boomers around until the 2030s Born 1946 – 1961 Now aged 44 – 59 First Boomer retires 1 July 2011 Consumerist by nature Hippies, punks, dinks & yuppies … and now Seachangers Will redefine retirement … may well work longer Boomer retirement impact will peak 2016 - 2021 Today’s retireesTomorrow’s retirees

8. © 2005 KPMG, an Australian partnership, is part of the KPMG International network. KPMG International is a Swiss cooperative. All rights reserved. The KPMG logo and name are trademarks of KPMG. kpmg Further information & contact The Big Shift 2 – $19.95rrp Bernard Salt’s column appears in The Australian every Thursday Bernard Salt’s columns appears monthly in Property Australia and Wish Magazine Population Growth Report 2005 now available at $595: contact fmevans@kpmg.com.au Contact: Bernard Salt (03) 9288 5047; bsalt@kpmg.com.au; www.thebigshift.com.au bsalt@kpmg.com.auwww.thebigshift.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.