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By Jessica Thakur, April 1 2024
Australia's vibrant economy and multicultural society are fueled in part by a well-designed Migration Program. Now, the government is looking ahead, considering a multi-year approach to planning this crucial program.
Migration: A Boost for Australia
Migration isn't just about filling empty seats. It's a strategic tool that:
Strengthens the Economy: Migrants contribute to GDP, fill skill gaps, and drive innovation, making Australian businesses more competitive.
Enhances Society: Family reunification strengthens social bonds and fosters cultural exchange, enriching communities.
Supports Future Planning: Migration helps manage population growth, address demographic challenges, and support regional development.
A Review for the Future
In 2023, a comprehensive review of Australia's Migration System highlighted the need for long-term planning. Currently, planning happens annually. A multi-year approach would allow for:
Better Strategic Response: Proactive planning to address challenges and opportunities.
Stronger Partnerships: Closer collaboration with states and territories for tailored migration solutions.
Alignment with Investment: Synchronizing migration planning with infrastructure, housing, and service investments.
Looking at Numbers: Migration and Population
Recent net overseas migration (NOM) has been higher than expected, partly due to a pandemic rebound. This is driven by student arrivals, skilled labor shortages, and low unemployment. The permanent Migration Program size hasn't increased, indicating other factors influencing NOM.
Migration and Housing
Migration can impact both housing supply and demand. While it increases housing demand, it can also address skill shortages in the construction industry, ultimately boosting housing supply.
The Road Ahead
The Australian Government is considering a multi-year planning model for the Migration Program, potentially starting in 2025-26. This approach aims to ensure migration continues to benefit Australia's economy, society, and future growth.
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