Australia is set to witness its largest ever wave of migration, with government figures revealing that 650,000 migrants are expected to arrive in this fiscal year and next.
The sudden population boom is likely to add pressure to a national housing crisis that has seen record-high rents as too many tenants compete for too few homes.
But it will also alleviate a workforce shortage that has caused chronic job vacancies as employers struggled to find employees to fill positions, particularly in retail, healthcare, hospitality and tourism.
The revised immigration data comes after only 300,000 migrants arrived in the country during the three years of lockdowns and pandemic lockdowns.
Treasury officials in 2019 expected a total of 1.2 million immigrants to arrive in the country by the end of 2024, but that number has now been revised down to 950,000 immigrants.
The latest analysis indicates that the country is expected to see 650,000 migrants start a new life in Australia by the end of the 2024 financial year.
Australia is expected to experience its largest two-year population growth on record with around 650,000 migrants arriving this fiscal year (pictured, skilled workers)
At least 350,000 are expected to settle in Australia this financial year with a further 300,000 in the following 12 months.
The previous record over two financial years was 577,000 immigrants in 2008 and 2009 under Prime Minister Kevin Rudd.
A sudden surge in population is set to result in a budget windfall for the government as consumer spending and taxes increase to aid economic growth.
But it will add to the worsening housing crisis, as housing cannot be provided to meet the needs of tenants, while high interest rates and the high cost of living have halted real estate sales.
The rapid rise in immigration will increase Australia’s population by 27 million by June next year and is expected to reach nearly 30 million in 2033 according to projections from the Treasury.
More than half of the expected migrants have arrived in Australia as part of a post-Covid boom in skilled workers, international students and holiday makers.
In the first three months of this financial year, from July to September 2022, 106,000 migrants arrived in Australia, reports say. Australian.
They were part of a wave of 304,000 migrants who arrived in the country in the year to September as borders reopened after Covid restrictions shut down Australia.
This is the highest population increase since March 2009, but it is expected to overshadow the now expected migrant flow in the next 15 months.
Jim Chalmers revealed that net out-migration for this fiscal year is likely to be 350,000, 50 percent more than projected in the October budget and January’s annual population statement.
He said the sudden growth will be a key factor in the Albanian government’s second budget, which is due to be delivered in six weeks and which will focus on cost-of-living relief.
Treasury Secretary Stephen Kennedy told a Senate hearing last month that temporary immigration had recovered faster than expected.
“Net out-migration figures are being artificially boosted this year by the resumption of inflows of international students and working tourists,” said Dr. Kennedy.
“Besides a broad easing in employment demand, increases in net out-migration should help mitigate skills and labor shortages, particularly in the hospitality and retail sectors.”
The large number of immigrants, tourists and working vacationers is expected to increase spending, government tax collection and demand for services.
The sudden growth will be factored into the Albanian government’s second budget, Jim Chalmers said (pictured, Prime Minister Anthony Albanese and partner Judy Haydon)
In particular, the influx of migrants has fueled concerns about Australia’s housing shortage and limited rental market.
“Bigger isn’t better, it’s just bigger,” said economist Chris Richardson.
“It’s good for the construction industry. We haven’t built enough houses.
Covid has us into smaller families but we definitely need more supplies.
After 10 consecutive interest rate increases, economists at the National Australia Bank said rents have risen by about 11 percent in major cities.
“This has contributed to a sharp tightening in the rental market as vacancy rates have fallen to about or less than 1 percent in most cities,” NAB said.
Government sources insist the spike in immigration is temporary and will return to the pre-Covid 10-year average of about 230,000 immigrants after 2024.