The massive influx of migrants has driven the nation's fastest population growth in more than two decades, adding to the labour supply but intensifying the pressure on housing, infrastructure and services.
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The number of people living in Australia swelled to 26.6 million in the June quarter, 2.4 per cent more than a year earlier, with by far the biggest contribution coming from new arrivals from overseas.
According to the Australian Bureau of Statistics, the net intake of overseas migrants reached 518,100 in the 12 months to the end of June, accounting for 83 per cent of overall population growth.
In the ACT, almost 90 per cent of population growth was due to a net intake of 8788 overseas arrivals. The influx helped push the territory's population to 466,800, a 2.2 per cent increase.
Australia has one of the fastest growing populations among advanced economies, due largely to its attractiveness to migrants.
The surge of overseas arrivals since the pandemic has contributed significantly to growth, including helping businesses fill vacancies and generating economic activity.
But it has also added to demand for accommodation, goods and services, deepening the housing crisis and contributing to inflation.
The government has unveiled changes to the migration system aimed at sharpening the focus on those with skills that are in demand and clamping down on international student visas.
Treasurer Jim Chalmers said net overseas migration had likely passed its peak and "we expect it to more or less halve by next year".
The Treasurer said the government's migration strategy would result in 180,000 fewer migrants over the next four years.
"Net overseas migration came back faster than anybody was anticipating," he said.
"We recognise that we could do more in the demand-driven parts components of net overseas migration so that there's more integrity and so we are clamping down on where there is an obvious need to do so."
