International students and overseas workers would be able to move into regional Australia, under the opposition's plan to address the housing crisis and slash migration.
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Opposition Leader Peter Dutton has promised that if elected in 2025, a coalition government would introduce a two-year ban on foreigners buying existing homes, cut the number of international students and reduce overseas net migration from 260,000 to 160,000.
The government would need to increase supply by leveraging existing homes and Mr Dutton said this would free up more than 100,000 homes over the next five years.
Asked if the cut to migration numbers would hurt the regions, Nationals Leader David Littleproud said the plan would address the nation's pressure points while acknowledging economic necessities.
"This is about making you use the policy levers ... to make sure we get that balance right," he told Sky News on Sunday.
"This is about making the tough decisions that prioritise where the economy needs the support to continue to grow - and particularly in the regions."
For example, Mr Littleproud said he would work with the Liberal Party to ensure regional universities that rely heavily on international students continued receiving student numbers and support.
The coalition would also set up an agriculture visa that would allow migrants to work in regional Australia in both farming jobs and periphery roles.
"They simply don't have the labour force without them," Mr Littleproud said.
But Treasurer Jim Chalmers says the opposition's plan would divide the Australian community and hurt the economy.
"His budget reply was dark, it was divisive - intentionally so - and the net effect of all that would be that he would destroy the budget and damage the economy," he told the ABC.
The government has its own plan to halve net overseas migration and reduce permanent migration, but Dr Chalmers says it was created with the economy and skills base in mind.
The coalition is also pushing for Australians to be allowed to withdraw up to 40 per cent of their retirement savings - to a maximum of $50,000 - to buy their first home.
The proposal has been criticised by economists and the superannuation industry, who said it would push up house prices, put retirees with mortgages at risk and not benefit young Australians and renters.
But Mr Littleproud defended the plan as just one part of a broader policy.
"It's about buying time to increase supply and also giving that hope to young people that one day they might actually own their home," he said.
The federal and state governments have committed to building 1.2 million well-located homes but a report from the government-appointed National Housing Supply and Affordability Council found that the Commonwealth would fall short by hundreds of thousands.
Australian Associated Press
