Australia's Treasurer Jim Chalmers described proposals for deeper cuts to migration as "absolutely diabolical" for the nation's long-term economic prospects. While acknowledging the need to address housing supply concerns, Chalmers emphasized that migration is crucial for boosting the working-age population and filling skill shortages.
The debate over migration levels in Australia highlights a tension between addressing immediate housing pressures and ensuring long-term economic growth through population and workforce expansion. Proposed significant cuts could impact industries reliant on foreign labor and slow the growth of the tax base, while maintaining current levels may continue to strain housing and infrastructure.
Australia's Treasurer Jim Chalmers has strongly criticized proposals for deeper cuts to migration, labeling them "absolutely diabolical" for the nation's long-term economic health. Chalmers acknowledged the political pressure to address housing supply issues, with some right-wing parties arguing that migration exacerbates demand for constrained housing. However, he stressed that migration is essential for bolstering Australia's working-age population, especially as fertility rates decline.
The latest projections indicate Australia is now on track for a population of 39.3 million by 2065-66, a downward revision from the 40.5 million forecast in the 2023 intergenerational report. Members of Parliament have reportedly expressed skepticism regarding the long-term accuracy of such projections.
Chalmers confirmed that the government is deliberately managing net overseas migration down from the surge experienced after the COVID-19 pandemic, viewing this as a positive step. He indicated further reductions towards normal levels are planned. "In the context of skill shortages in construction and the care economy — the responsibility that we embrace is to have a serious robust, responsible, transparent and tight migration system in our national interest," he stated.
Chalmers contrasted the government's approach with what he described as "slogans masquerading as policy" from political opponents. He warned that such policies would not only damage the economy in the short term but would have "absolutely diabolical" consequences in intergenerational terms. One Nation, led by Pauline Hanson, advocates for net-negative overseas migration by cutting 750,000 temporary visas over three years. The Coalition, seeking to differentiate itself on the political right, also supports deeper cuts than Labor, linking migration numbers to housing construction targets.
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