Young people could become the first generation to be poorer than their parents, exposing the need for a rethink of who pays tax and who can fund their own services, the heads of the Australian and New Zealand treasury departments have warned.

The growing intergenerational gap between the old and young was most striking in homeownership and wealth, but also evident in education performance, mental health after the pandemic and voter participation at elections, New Zealand Treasury boss Caralee McLiesh said.