Treasurer Jim Chalmers says the Coalition’s proposal to cut Australia’s immigration intake by 25 per cent could cost the economy tens of billions of dollars.
Opposition leader Peter Dutton used his budget response speech on Thursday to announce a crackdown on migration and foreign property investment as part of his solution to the housing supply crisis.
Under the Coalition proposal, the number of permanent visas granted each year would be reduced from 185,000 to 140,000, with a specific reduction in the number of international students.
Dr Chalmers said the move would “devastate” the economy and exacerbate the already crippling skills shortage affecting the construction and healthcare sectors.
“It will cost the economy billions of dollars, but even the kind of estimates you will see are conservative because it is not possible to fully capture the damage that Peter Dutton would do to the skills base of this country, to our hospital, to our works construction,” Dr. Chalmers told ABC on Sunday.
Treasurer Jim Chalmers says the Coalition’s proposal to cut Australia’s immigration intake by 25 per cent could cost the economy tens of billions of dollars, but has admitted it can help ease the country’s housing crisis.
Opposition leader Peter Dutton used his budget response speech on Thursday to announce a crackdown on migration and foreign property investment as part of his solution to the housing supply crisis (file image)
“By our estimates, it has a hole of at least $40 billion in its budget, but it will also cost the economy billions of dollars and that’s not even taking into account the damage it’s doing to the skills base we need.” to build the future.”
But when asked whether reducing migration would help ease the housing crisis, Dr Chalmers admitted: “At best, at the margins.”
Meanwhile, Labor plans to halve the net overseas migration rate to 260,000 and slightly reduce permanent migration inflows.
‘The best way to end this migration program is to do so carefully and methodically. “I don’t think you can describe what Peter Dutton is proposing as thoughtful or methodical,” Dr Chalmers added.
‘We have achieved the most effective and appropriate balance which recognizes that we need to reduce somewhat the net number of overseas migration and also the permanent number. But we can do it in a way that doesn’t destroy our economy and doesn’t destroy the skills base of our economy.
He added that reducing migration cannot be a substitute for “building more housing and that is why it is one of our main focuses in the budget.”
The Treasurer argued that the Coalition’s plans to ban foreign home buyers from purchasing existing properties for two years would have little impact on providing immediate housing help.
He said recent data showed that of the fewer than 5,000 homes purchased by foreigners, around 1,300 of them were classified as established homes.
“This won’t make nearly the difference he claims,” he said.
Dr Chalmers said the move would “devastate” the economy and exacerbate the already crippling skills shortage affecting the construction and healthcare sectors.
Previously, Nationals leader David Littleproud suggested regional universities that rely on large numbers of overseas students would receive a reduced cap on overseas students under the opposition’s migration plan.
She said that, if re-elected, the Coalition would revive an agriculture-specific visa to redirect the most skilled migrants from metropolitan cities to rural towns.
Asked how it would be possible to increase the number of migrants moving into the regions under a drastically reduced migration target, Mr Littleproud said it would be possible if “tough” decisions were made in other areas of the economy.
“What you need to do is prioritize where the need is in the economy and where those pressure points are,” he told Sky News.
‘This is about making difficult decisions that prioritize where the economy needs support to continue to grow, and particularly in regions where we want to be very clear, that we do not want regions to suffer due to exacerbated problems in the capitals.’
