Peter Dutton proposes striking policy change to solve Australia's crisis
- Replies 8
The challenge of home ownership is growing, with the housing crisis deepening nationwide.
A new proposal has ignited debate, offering a potential path to relief—but not without concerns about its broader impact.
The proposal has sparked strong reactions; some see it as a much-needed solution, while others raise questions about its long-term effects.
The Coalition's plan to significantly reduce immigration by 45,000 people annually aims to ease the pressure on the housing market.
If the Coalition were to govern, this reduction would see Australia's net overseas migration rate, which includes skilled migrants and international students, drop by nearly half to 180,000 by the 2026-27 financial year.
In contrast, under the current Labor government, net overseas immigration is projected to be 225,000, 45,000 higher than under the previous government, according to Treasury Budget forecasts.
Shane Oliver, AMP's chief economist, has weighed in on the Coalition's proposal, suggesting that a lower net overseas arrivals figure of 180,000 could, indeed, alleviate some of the strain on housing prices.
'From a housing point of view, you'd say yes,' he explained.
'It would more quickly balance the housing market - take pressure off rents, house prices. There's no doubt about that.'
The proposed 45,000 reduction in overseas migration could free up 18,000 homes, based on the average Australian household size of 2.5 people.
This would align the increase in net overseas migration with the annual rise in the supply of new homes, leading to a significant decrease in housing demand.
Dutton's plan involves cutting the permanent migration cap by 25 percent to 140,000 from the current cap of 185,000.
This cap encompasses skilled workers, family reunions, and humanitarian visas.
It is separate from the long-term category that includes international students and working holiday visa holders.
'Under the Coalition, we will cut the migration intake to free up housing and restore the great Australian dream of home ownership,' Mr. Dutton declared in his Budget reply speech. He emphasised.
If the Coalition were to win the upcoming election, Australia's net overseas migration rate would fall to its lowest level in 12 years, excluding the COVID-19 pandemic period.
This decrease would also be influenced by the expected departure of international students upon graduation, a trend that will occur regardless of the ruling party.
Both major political parties have pledged to halve immigration levels from the record highs of late 2023, when nearly 550,000 foreigners moved to Australia.
Treasury projections show a decline to 335,000 in 2024-25, followed by a further drop to 260,000 in 2025-26.
Reducing immigration may offer some respite for the housing market.
Dr Oliver warns that cutting numbers below the 'sweet spot' of 200,000 could lead to slower economic growth and exacerbate labor shortages.
Immigrants often fill roles in sectors like aged care, healthcare, and hospitality—less appealing jobs to Australians.
Moreover, a lower immigration rate could hinder Australia's coping with an aging population, as immigrants typically represent a younger demographic.
The Coalition's immigration policy proposal presents a complex dilemma.
On one hand, it offers a potential solution to the housing affordability crisis, which has left many Australians struggling to achieve home ownership.
On the other hand, it raises concerns about the broader economic impact, including labor shortages and reduced economic growth.
Considering the implications of such a policy change, weighing the immediate benefits against the long-term consequences is crucial.
The housing crisis is a multifaceted issue that requires careful consideration of all factors involved.
It's a delicate balance between providing affordable housing and maintaining a robust, dynamic economy that can support its citizens now and in the future.
In other news, Commonwealth Bank forecasts a fall in Australian house prices in early 2025 despite expected interest rate cuts.
National fatigue is anticipated in the housing market due to stretched affordability. You can read more about it here.
Do you believe that reducing immigration is a viable solution to the housing crisis, or are there other measures that should be taken? How do you think such a policy would affect the broader Australian economy and society? Join the conversation and let us know your perspective.
A new proposal has ignited debate, offering a potential path to relief—but not without concerns about its broader impact.
The proposal has sparked strong reactions; some see it as a much-needed solution, while others raise questions about its long-term effects.
The Coalition's plan to significantly reduce immigration by 45,000 people annually aims to ease the pressure on the housing market.
If the Coalition were to govern, this reduction would see Australia's net overseas migration rate, which includes skilled migrants and international students, drop by nearly half to 180,000 by the 2026-27 financial year.
In contrast, under the current Labor government, net overseas immigration is projected to be 225,000, 45,000 higher than under the previous government, according to Treasury Budget forecasts.
Peter Dutton proposes a significant change in immigration policy to reduce Australia's housing crisis by cutting immigration by 45,000 people per year. Credit: Facebook
Shane Oliver, AMP's chief economist, has weighed in on the Coalition's proposal, suggesting that a lower net overseas arrivals figure of 180,000 could, indeed, alleviate some of the strain on housing prices.
'From a housing point of view, you'd say yes,' he explained.
'It would more quickly balance the housing market - take pressure off rents, house prices. There's no doubt about that.'
The proposed 45,000 reduction in overseas migration could free up 18,000 homes, based on the average Australian household size of 2.5 people.
This would align the increase in net overseas migration with the annual rise in the supply of new homes, leading to a significant decrease in housing demand.
Dutton's plan involves cutting the permanent migration cap by 25 percent to 140,000 from the current cap of 185,000.
This cap encompasses skilled workers, family reunions, and humanitarian visas.
It is separate from the long-term category that includes international students and working holiday visa holders.
'Under the Coalition, we will cut the migration intake to free up housing and restore the great Australian dream of home ownership,' Mr. Dutton declared in his Budget reply speech. He emphasised.
If the Coalition were to win the upcoming election, Australia's net overseas migration rate would fall to its lowest level in 12 years, excluding the COVID-19 pandemic period.
This decrease would also be influenced by the expected departure of international students upon graduation, a trend that will occur regardless of the ruling party.
Both major political parties have pledged to halve immigration levels from the record highs of late 2023, when nearly 550,000 foreigners moved to Australia.
Treasury projections show a decline to 335,000 in 2024-25, followed by a further drop to 260,000 in 2025-26.
Reducing immigration may offer some respite for the housing market.
Dr Oliver warns that cutting numbers below the 'sweet spot' of 200,000 could lead to slower economic growth and exacerbate labor shortages.
Immigrants often fill roles in sectors like aged care, healthcare, and hospitality—less appealing jobs to Australians.
Moreover, a lower immigration rate could hinder Australia's coping with an aging population, as immigrants typically represent a younger demographic.
The Coalition's immigration policy proposal presents a complex dilemma.
On one hand, it offers a potential solution to the housing affordability crisis, which has left many Australians struggling to achieve home ownership.
On the other hand, it raises concerns about the broader economic impact, including labor shortages and reduced economic growth.
Considering the implications of such a policy change, weighing the immediate benefits against the long-term consequences is crucial.
The housing crisis is a multifaceted issue that requires careful consideration of all factors involved.
It's a delicate balance between providing affordable housing and maintaining a robust, dynamic economy that can support its citizens now and in the future.
In other news, Commonwealth Bank forecasts a fall in Australian house prices in early 2025 despite expected interest rate cuts.
National fatigue is anticipated in the housing market due to stretched affordability. You can read more about it here.
.png){kind=icon}
