In a bold move that has sparked widespread debate, Opposition Leader Peter Dutton has unveiled the Coalition’s plan to give the country’s immigration policy a major overhaul, promising to significantly reduce the number of migrants entering the country.
The proposed cut, which reportedly aims to ease the nation’s escalating housing crisis, could see immigration numbers slashed by 45,000 annually. But while the plan may offer a reprieve for those struggling to enter the housing market, it raises serious concerns about the potential economic and social costs.
The Coalition’s strategy to reduce net overseas migration by nearly half to 180,000 by the 2026-27 financial year is a stark contrast to the current Labor government’s projections of 225,000, based on Treasury Budget forecasts.
This reduction, according to AMP chief economist Shane Oliver, would likely alleviate some of the pressure on Australia’s housing market by balancing supply and demand, potentially leading to lower rents and house prices.
The rationale behind the Coalition’s proposal is straightforward: with fewer migrants, there would be less demand for housing. Oliver estimates that the 45,000 reduction in migration could free up around 18,000 homes, assuming an average household size of 2.5 people.
However, the plan is not without its detractors. Critics argue that such a drastic cut to immigration could have far-reaching implications beyond the housing sector. A lower migration intake could reportedly hinder economic growth and exacerbate existing labour shortages in critical industries such as aged care, healthcare, and hospitality.
Moreover, a reduced immigration rate could reportedly impact Australia’s ability to cope with an ageing population. Younger immigrants typically help to offset the demographic challenges of an ageing society, contributing to the workforce and supporting the economy.
Peter Dutton, in his Budget reply speech, emphasised the need for sustainable migration and government control over the process. He argued that the current Labor government has failed to maintain manageable migration levels, and his plan would restore the ‘great Australian dream of home ownership.’
As Australia approaches the election on 3 May, the Coalition’s immigration policy has become a pivotal issue. Both major parties have committed to halving immigration from the record highs of late 2023, when nearly 550,000 foreigners moved to Australia.
The Treasury has forecast a gradual decline in net overseas migration, with numbers expected to fall to 335,000 in 2024-25 and 260,000 in 2025-26.
As Australians over 50, many of whom have experienced the challenges of securing affordable housing for themselves or their families, it’s important to weigh the potential benefits of improved housing affordability against the broader implications of reduced immigration.
We invite you, our YourLifeChoices readers, to share your thoughts on this issue. Do you believe that cutting immigration is the right move to solve the housing crisis, or are there better solutions that could address the problem without risking economic growth and labour shortages? Join the conversation in the comments below and let us know your perspective.
Also read: Housing hack or hoax? Expert slams government’s housing market move
Imagine Dutton spruiking cutting back immigration which Labor is already doing.
Why did we have record high immigration when you were immigration Minister Peter?
Was it you who caused this housing affordability crisis?
Should stop ALL immigration until Australia gets back on its feet.
this from the ABC newspaper this morning
”A bid to build affordable units on church land in Brisbane’s east has been approved despite protests from home owners who claim it’s “inappropriate”
no wonder we cannot build affordable houses
the developers don’t want to anyway ,no profits in cheap houses
550,000 to enter the country, that is ridiculous, someone’s not paying attention at the door. At a stadium or theatre, when you’ve sold all the tickets, the doors are closed, and that’s it. I still cannot believe 550K. Ad then 335K this year, and 26K next year, why not make it 260K this year. Immigrants can just become residents, and then obtain a Medicare card. Say no more !