Intergenerational Report: Document retro-fits Abbott Government's argument for tough 2014-15 budget

Gone is the talk about a "budget emergency".

Instead, the Federal Treasurer, Joe Hockey, says the latest Intergenerational Report shows "our best years are ahead" and now he wants to have a conversation with Australia about what the future will look like.

The document serves a dual purpose - to illustrate the impact of an ageing and growing population on our nation's finances.

But it also clearly shows what would happen to the nation's finances if the Abbott Government's entire proposed budget measures from the 2014-15 budget are allowed to pass Parliament.

If all the measures become law - including planned future changes to the age pension and curtailing of planned Gonski education spending - the budget will make a modest return to surplus in 2020.

Without those changes - which the Government has previously said the public can have its say about them at the next federal election - "the budget will not return to surplus at any point over the next 40 years ..."

It also clearly contrasts its plan with the last Labor government's budget, with graphics showing a grim red ink for four decades ahead.

That is what the Government hopes will jolt the public, and Senate crossbenchers, into re-evaluating the previous tough fiscal medicine it has previously proposed.

These figures also make one mighty assumption, that Australia's already record run of positive growth will continue to 2055, without a recession.

Economists will tell you, as Sir Humphrey did, that is a "very courageous" assumption.

Now, expect Mr Hockey and Prime Minister Tony Abbott to use it to continue their "conversation" with the public that "we can have a positive and more prosperous future if we plan for tomorrow, today".

It is a document that retro-fits the Government's argument on why last year's tough budget medicine was needed to ensure the nation is well placed to deal with the uncertain, global economic environment ahead.