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Cost of living pressures have helped supermarket giant Coles to a 4.8 per cent rise in profit but organised crime is increasingly threatening its bottom line.

The company on Tuesday reported supermarket sales revenue for the last financial year grew by 6.1 per cent with cash profit rising to $1.1 billion from $1.05 billion the year before.

Customers felt a 6.7 per cent bump in check-out prices for the year, but new chief executive Leah Weckert says Coles is well placed for growth as more people choose to eat at home.

"Eating out, takeaway and coffees from the cafe are increasingly being seen as treats for a special occasion," she told analysts.

Ms Weckert is pleased headline inflation has moderated but there is large price variation across categories.

Fresh produce prices - including for cucumbers, broccoli and capsicum - are deflating rapidly, while inflation of bakery and dairy products continues unabated.

Sales of own brand products grew strongly, including staples like pasta and rice as well as premium end lines.

"Customers are still looking to have a treat and a restaurant quality meal and are increasingly looking to supermarkets to do more with their budgets," Ms Weckert said.

Coles' gross margin increased to 26.4 per cent, boosted by reduced COVID-19 costs, technology-driven cost-cutting initiatives, growth in Coles 360 and lower tobacco sales.

But an industry-wide surge in shoplifting by organised criminals contributed to a 20 per cent increase in stock losses.

"We're certainly seeing a lot more reports coming through from stores where they see a loss that is quite large and targeted," Ms Weckert said.

Coles is looking to address the issue by stepping up security guards at stores as well as initiatives such as trolley locks and smart gates.

E&P Capital retail analyst Phillip Kimber says the profit result was two per cent lower than consensus expectations and will likely weigh on the share price.

Weak growth in the second half of the financial year, complicated by increased costs associated with delays in setting up two automated customer fulfilment centres, implies downside risks to earnings forecasts, Mr Kimber said.

Liquor sales revenue was flat for the year at $3.6 billion with ready-to-drink products the strongest performing category.

Overall group sales revenue from continuing operations grew 5.9 per cent to $40.5 billion and earnings before interest and tax lifted 1.8 per cent to $1.9 billion.

Coles delivered a fully-franked final dividend of 30c per share to bring its full-year dividend to 66c.

© AAP 2023

The prime minister has warned Australia needs to collectively plan for an ageing population, with economic growth set to slow in coming decades.

The 2023 Intergenerational Report to be released on Thursday will reveal economic growth into the 2060s will be sluggish, largely due to an ageing society and stalled population growth.

At the same time, the economy will be two-and-a-half times bigger over the next 40 years.

Prime Minister Anthony Albanese said the release of the report signalled the need for the country to be prepared for an ageing workforce and other issues associated with it.

"We need to be collectively planning as a nation for it," he told ABC Radio on Tuesday.

"That's why we need to respond to the aged care royal commission properly.

"That's why we need to consider issues such as the way we build - our housing needs to be adaptable so that as people age they can stay in-home, which is what most people, of course, prefer to do."

Mr Albanese said the report would be an "important signpost" for Australia's direction over coming decades.

GDP is projected to grow at an average of 2.2 per cent a year from 2022/23 to 2062/63, which is 0.9 percentage points lower than the average growth of the past 40 years.

Treasurer Jim Chalmers said Australia was one of the best-placed nations to respond to the economic headwinds ahead because of its low unemployment and near-record labour force participation.

He said the slower growth was in line with other advanced economies.

Tax and non-tax receipts are set to rise to 26.3 per cent of GDP in 2033/34, before peeling back slightly in the three following decades.

Structural changes to the economy will put pressure on tax revenue, with proceeds from fuel and tobacco excises to shrink as Australia transitions away from fossil fuels and as fewer people smoke.

Company tax and the GST will largely stay in line with economic growth, while the percentage of revenue from personal taxes will increase as incomes rise and the population grows.

Dr Chalmers has ruled out any changes to the GST, but is eyeing off tax reform in the areas of multinationals, high-balance superannuation and offshore petroleum production.

Nationals leader David Littleproud said a "mature conversation" about tax reform was needed.

"It's important we look at what that tax mix looks like, what our economy will look like in 30 to 40 years ... and I think that's about making sure it's equitable," he told ABC Radio.

"We do need political leadership from all sides to have that mature conversation, knowing the burdens that are coming on the NDIS, Medicare, and making sure we can provide that safety net."

Meanwhile, there is mixed news on the economic front, with the latest ANZ-Roy Morgan survey showing consumer confidence dropping by 2.4 points over the week.

Among the mainland states, confidence rose in South Australia and WA, while it fell in NSW, Victoria and Queensland.

The reading for "weekly inflation expectations" jumped 0.3 percentage points to 5.5 per cent.

The result for "future financial conditions" was down 4.2 percentage points, after a 7.6 point rise in the previous week.

ANZ senior economist Adelaide Timbrell said the fall may have been driven by some weakness in the Australian dollar, but the four-week moving average of the consumer confidence index continued to edge higher.

© AAP 2023

Five reform areas will be the focus of a federal government bid to lift wages and living standards over coming decades.

The 2023 Intergenerational Report to be released on Thursday will reveal economic growth into the 2060s will be sluggish, mainly because of an ageing society and stalled population growth.

At the same time, the economy will be two-and-a-half times bigger over the next 40 years.

Gross domestic product, or economic output, is projected to grow at an average of 2.2 per cent a year from 2022/23 to 2062/63, which is 0.9 percentage points lower than the average growth of the past 40 years.

The Business Council is seeking to encourage reform and this week said if the country continued "along the low road, Australians are sitting on a wages and unemployment timebomb".

Treasurer Jim Chalmers said Australia was one of the best-placed nations to respond to the economic headwinds because of its low unemployment and near-record labour force participation.

But he said there were five areas the government was working on in which productivity gains could be made over the next four decades.

One of the areas was to renew economic institutions such as the Reserve Bank, promote innovation and boost competition including in the payments system.

Investing in data and digital infrastructure including digital ID, the National Broadband Network, and the quantum and artificial intelligence sectors would be crucial.

Another focus is building a more skilled and adaptable workforce through improving access to tertiary education, and establishing a Universities Accord and a new national skills agreement.

As well, the care economy will be central to the creation of new jobs and supporting an ageing population.

This will involve ensuring health and aged care spending, the National Disability Insurance Scheme and early education are all working in sync.

But he said one of the biggest changes would be the way Australia shifts to a net-zero emissions economy.

"Ultimately boosting productivity is about increasing our nation's prosperity, boosting wages and lifting living standards over time," he said.

Tax and non-tax receipts are set to rise to 26.3 per cent of GDP in 2033/34, before peeling back slightly in the three following decades.

Structural changes to the economy will put pressure on tax revenue, with proceeds from fuel and tobacco excises to shrink as Australia transitions away from fossil fuels and as fewer people smoke.

Company tax and the GST will largely stay in line with economic growth, while the percentage of revenue from personal taxes will increase as incomes rise and the population grows.

Dr Chalmers has ruled out any changes to the GST, but is eyeing off tax reform in the areas of multinationals, high-balance superannuation and offshore petroleum production.

Nationals leader David Littleproud said a "mature conversation" about tax reform was needed.

"We do need political leadership from all sides to have that mature conversation, knowing the burdens that are coming on the NDIS, Medicare, and making sure we can provide that safety net."

Meanwhile, the latest ANZ-Roy Morgan survey showing consumer confidence dropping by 2.4 points over the week.

Among the mainland states, confidence rose in South Australia and WA, while it fell in NSW, Victoria and Queensland.

The reading for "weekly inflation expectations" jumped 0.3 percentage points to 5.5 per cent.

ANZ senior economist Adelaide Timbrell said the fall may have been driven by some weakness in the Australian dollar, but the four-week moving average of the consumer confidence index continued to edge higher.

© AAP 2023