The inaugural Sustainable Australia Report has been released by the government appointed National Sustainability Council, highlighting major challenges faced by the coming years as the country continues to grow.

Federal Environment Minister, Tony Burke, welcomed the report, saying that it will form a crucial tool in the development of the future economy.

“The Sustainable Australia Report is the first of its kind in Australia and provides the evidence base we need to focus on the wellbeing of our children and of future generations,” Mr Burke said.

“Sustainability is about more than just the economy. It is about the sort of society we want to live in and hand on, it is about our health, our education, our happiness and the environment we live in.

“This and the council’s subsequent reports will better inform policy makers, businesses and individual Australians about how we can together move towards a more sustainable future.

The Property Council of Australia has welcomed the report, saying that it delivers a clear message for all governments not to take prosperity for granted.

"While our major cities are among the most liveable in the world and house Australia's economic powerhouses, we can't expect this to be the case into the future without continued investment in urban productivity,” Property Council Chief Peter Verwer said.

"Our housing and infrastructure are not keeping pace with demand, and this is a threat to our long term prosperity.”

The full report can be found here