Business Debunks the Notion of Massive Immigration Surge as the Root Cause of Australia’s Housing Crisis

An influx of immigrants since the reopening of Australia’s borders after Covid should not be blamed for inadequate planning and housing shortages, according to the business lobby.

In a new report, the Business Council of Australia (BCA), which represents wealthy corporate CEOs, argues against labeling the increase in migration as a ‘big Australia’ policy. Despite the projected arrival of a record 400,000 new migrants by June 30, the BCA rejects the notion that migration is driving the housing crisis.

Contrary to its traditional stance as the party of business, the Liberal Party has criticized the Labor Party’s approach to immigration.

BCA CEO Jennifer Westacott, a supporter of the Voice to Parliament initiative, stated that migration numbers are returning to pre-pandemic levels following the closure of borders in 2020 and 2021.

While the BCA acknowledges the housing supply issue, it argues that cutting migration numbers is not the solution. The report emphasizes the need for well-planned and managed migration, including sufficient housing supply. The council highlights the role of inadequate planning systems and restrictive zoning in limiting housing availability.

The report also points out that the desire for more living space during Covid lockdowns, coupled with a decline in the number of people per dwelling, has further increased the demand for housing.

The BCA commends the government’s efforts to reform the migration system, noting that complex processes hinder economic progress and the attraction of talented individuals.

Regarding the temporary labor migration plan, the BCA supports the three-tier system but cautions that the increased income threshold for temporary skilled migration could impact the supply of workers in roles with lower wages.

Treasury predicts a record net overseas migration of 400,000 people in 2022-23, with the May Budget papers projecting 1.5 million migrants moving to Australia by June 2027.

Dan Tehan, the Coalition’s immigration spokesman, criticizes Labor’s immigration policy, referring to it as a ‘big Australia’ approach. He states that although Labor has pushed for population growth, workforce shortages remain in crucial sectors. The Coalition, on the other hand, aims for a better Australia without such extensive growth.

Rapid population growth has resulted in higher rents and property prices. Sydney’s median weekly unit rent increased by 25.1% in the year to July, reaching $660.45. The high house prices make it difficult for single Australians with university degrees to afford a home in major cities, with the average full-time worker on a $94,000 salary needing 11.3 times their salary to make a 20% mortgage deposit.

The BCA’s members include Commonwealth Bank CEO Matt Comyn, whose total pay package for the previous financial year amounted to $10,425,744 with bonuses included, following a 50% annual pay rise.