Australians’ living standards are set to grow at a ‘‘significantly slower’’ pace over the next decade than in the past five decades, a senior Treasury official says.

While the growth of household income has risen by about 2 per cent each decade, the next 10 years could see living standards expand at just under 1 per cent, the Treasury’s chief economist David Gruen said at a conference in Sydney on Thursday.

Slowing but still growing: Australian living standards. Credit:Bloomberg

‘‘You are dealing with a world in which living standards are going to grow significantly slower than anything we’ve seen in our lifetimes,’’ Dr Gruen said at the Australian Business Economists’ annual conference.

‘‘Our estimates say that if we achieve productivity growth similar to its long run average, the next decade will see the slowest income growth in Australia for half a century by a lot.’’