Australia's population grew by 1.6 per cent in the year ending 30 September 2018, reaching 25.1 million, according to the latest figures released by the Australian Bureau of Statistics (ABS).

ABS demography director Anthony Grubb said that 395,100 people were added to the population in the year ending 30 September 2018, compared to 407,000 people in the year before.

"The growth rates varied across the states and territories. Victoria continued to have the fastest growth at 2.2 per cent, while the Northern Territory's population decreased by 0.2 per cent. New South Wales grew by 1.5 per cent and reached eight million people,” Mr Grubb said.

Net overseas migration added 240,100 people to the population and accounted for 61 per cent of Australia's total population growth. This is lower than net overseas migration of 259,400 in the year ending 30 September 2017.

Natural increase contributed 155,000 additional people to Australia's population, which was the result of 312,600 births and 157,600 deaths. This is higher than the natural increase of 147,500 in the year ending 30 September 2017.