Australia is set to see its biggest population surge ever with government figures revealing 650,000 migrants are predicted to arrive this year and next.
More than half of the expected migrants arrived in Australia as part of the post-Covid boom in skilled workers, international students and working holiday-makers.
In the first three months of this financial year, from July to September 2022, about 106,000 migrants arrived in Australia, according to The Australian.
Since September, another 304,000 people have come to live and work with two-thirds settling in New South Wales and Victoria.
It marks the highest population rise since March 2009.
Australia is predicted to see its biggest two-year population growth ever with some 650,000 migrants arriving this financial year (pictured, skilled workers)
Jim Chalmers has revealed net overseas migration this financial year is likely to be 350,000, a 50 per cent rise on what was expected in the October budget and January’s annual population statement.
He said the sudden growth will be accounted for in the Albanese Government’s second budget, set to be delivered in five weeks.
Treasury secretary Steven Kennedy told a Senate hearing last month temporary migration had recovered faster than expected.
‘Net overseas migration numbers are being artificially boosted this year by the resumption of inward flows of international students and working holiday-makers,’ Dr Kennedy said.
Read Related Also: Mum of Neil Kinnock’s granddson reveals her fears after her trans child gets double mastectomy
‘Coupled with broad softening in hiring demand, increases in net overseas migration should help to ease skill and labour shortages, particularly for the hospitality and retail sectors.’
The high number of migrants, tourists and working holiday-makers is expected to boost spending, government tax take and the demand for services.
Jim Chalmers said the sudden growth will be accounted for in the Albanese Government’s second budget (pictured, Prime Minister Anthony Albanese and his partner Jodie Haydon)
In particular, the influx of migrants has fed concerns about Australia’s housing shortage and limited rental market.
‘Bigger is not better, it’s just bigger,’ economist Chris Richardson said.
‘It’s good for the construction industry. We haven’t been building enough homes.
‘Covid pushed us into smaller households but we definitely need more supply.’
Following 10 consecutive interest rate rises, National Australia Bank economists said rent has been driven up by about 11 per cent in major cities.
‘This has contributed to a sharp tightening in the rental market where vacancy rates have fallen to around or below 1 per cent in most cities,’ NAB said.
Dr Chalmers said a key focus of the upcoming budget will be cost-of-living relief with the migration surge acting as a key factor in the government’s fiscal package.
