Chairman of the tax review Ken Henry yesterday highlighted the need for higher taxes.
He told delegates at a tax conference: "Older people are less likely to be in the workforce due to retirement or working less hours."
However, he added that older people are likely to cost the economy more.
"Generally, older people demand a lot more from governments than younger Australians, especially in health and aged care services," Mr Henry explained.
Mr Henry also added that he would like to see a tax system that over time could meet these "substantially larger fiscal costs".
His comments come after the Treasury's Joe Hockey told the Australian that big businesses are likely to fare worse than small firms when it comes to the Australian tax shakeup.
He suggested that the interests of small businesses were always likely to be put first.