Business opposes Coalition plan to cut migration to meet housing needs

Angus Taylor says migration should be in line with the houses available. (ABC News: Keane Bourke) Business groups are unified in their call to keep net migration numbers unchanged after Opposition Leader Angus Taylor called for numbers to be cut. The AiG and ACCI say migration is key to managing supply in the economy and businesses remain in need of the skills they bring into the country. Angus Taylor will deliver his budget reply speech at 7:30pm AEST on Thursday. Link copiedShareShare articleBusiness groups have expressed concerns over the Coalition's proposal to significantly lower net overseas migration numbers. "We have the numbers now on skilled migration about right," Australian Industry Group chief executive Innes Willox told the ABC. The Australian Industry Group (AiG) is the peak industry association, with a strong representation in the manufacturing sector. "The focus needs to be on ensuring we are bringing the right skills to Australia when they are needed in a timely and efficient manner," Mr Willox said. Some economists are forecasting price falls of up to 5 per cent as a result of measures to reduce intergenerational housing inequality. Net overseas migration is the net gain or loss of population through international migration to and from Australia. In the year ending June 30, 2025, overseas migration contributed a net gain of 306,000 people to Australia's population, according to ABS data. This was a decrease from the net gain of 429,000 people the previous year, and below the financial year record of 538,000 people in 2022-23. "It will be more than 70 per cent below that peak," Opposition Leader Angus Taylor told Seven's Sunrise. "But let me tell you, it will be in line with the houses available and we will assess each year what houses we have in this country and that will provide a cap to the people who come into this country. "We cannot have young Australians who are missing out on getting into a home because the level of migration is too high." The Coalition wants to limit Australia's net migration intake to only one person per new home built, but will wait until it is in government to decide what visa types to slash if elected. Mr Willox said he was open to a debate on migration "as it is a key driver of our economic fortunes." However, he said, maintaining the focus on a transparent and responsive skilled migration program as a key part of the overall program was "sacrosanct". Mr Willox said he saw migration as an essential lever in managing Australia's supply response as demand changed in the economy. The average Australian household dwelling houses 2.6 people, but the Coalition's policy would allow net migration to grow at a ratio of one person to one home built. The Coalition said that would give the construction sector time to "catch up" after historically high net overseas migration (NOM) in recent years. The Coalition wants to tie migration to housing supply. (ABC News: John Gunn) Mr Taylor said under Labor migration had run "miles ahead" of housing. The Australian Chamber of Commerce and Industry (ACCI) acting chief executive, David Alexander, has also weighed into the migration debate. "It's very important that policymakers get the design of our migration policy right because a well-designed migration program can bring significant economic benefits to Australia," Mr Alexander said. Mr Alexander said policy makers needed to consider a range of elements in the consideration of net migration overseas numbers, including "integrity, social cohesion and infrastructure adequacy, but meeting the needs of business must also be a key part of the considerations". Both AiG and ACCI said migration is key to managing supply in the economy, and businesses remain in need of the skills new arrivals bring into the country. "ACCI will continue to highlight the skills needs of employers and how business-related migration and international students bring broader benefits to the Australian community," Mr Alexander said. The Property Council of Victoria says Australia needs skilled migrants (file photo). ( ABC News: Damien Larkins) The Property Council of Australia argues the focus needs to be on the education of migrants who enter the country. "The last two decades are a shocker in that only two in every 100 skilled migrants have had the construction skills for property projects a growing nation needs," chief executive Mike Zorbas said. Mr Zorbas also thinks overseas student migration needs to be removed from the broader migration discussion. "Carve students out of this debate," he said. "They are here for an educational time, not a long time. "We can easily provide the quality student accommodation they need close to unis if we just get the settings right." Mr Taylor will deliver his budget reply speech at 7:30pm AEST on Thursday. Copy linkFacebookX (formerly Twitter)PromotionTop StoriesHere's how the Coles Down Down campaign duped shoppersTopic:Courts

Business opposes Coalition plan to cut migration to meet housing needs

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