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Australia is a highly mobile country in terms of economic outcomes, with a majority of the Xennial generation (born on the Gen X-Millennial cusp) earning more than their parents did at the same age. However, there is greater income persistence at the top and bottom of the income distribution, with children of high-income parents more likely to stay in the same income group and those with low-income parents more likely to experience poverty. Australia's mobility is notable given its relative income inequality, and it outperforms countries like the United States and China in terms of intergenerational mobility. However, there are concerns about declining educational performance and stagnant income growth for later Millennials and early Gen Zs, which could hinder future mobility. Increasing access to education, addressing poverty traps, improving housing affordability, and promoting economic growth are important for ensuring equal opportunities for future generations. [Extracted from the article]

The article focuses on the upcoming budget and the government's approach, highlighting three key challenges: high inflation and cost-of-living pressure and the structural budget problem. The government's strategy appears to be cautious and incremental, focusing on banking windfall gains, implementing lower-cost measures for vulnerable groups, and pursuing modest budget repair measures, while a bolder approach involving increased support, tax reforms, and spending reductions is suggested.