“Migrants deliver an economic dividend for Australia due to current policy settings which favor migrants of working age who have skills to contribute to the economy,” the report finds.
Updated Research by Treasury and the Department of Home Affairs shows skilled migration is in fact benefiting the country’s coffers.
This quells concerns about the need to cut immigration. International Monetary Fund estimates show Australia’s migration program will add up to one per cent to annual average GDP growth from 2020 to 2050, because it limits the economic impact of the ageing population (emphasis added), according to the paper.
It further states that while workforce participation and productivity gains are benefits, migrants also are likely to contribute more to tax revenue than they claim in government support. “To fully reap the benefits of immigration and population growth, Australia must continue to explore and address these issues,” the report says and acknowledges high rates of population growth can still heighten existing pressures on infrastructure and housing, and create congestion.
The paper warns of “far reaching effects” of significantly lower economic growth unless current rates of migration are maintained and states “In the absence of migration, Australia’s workforce would begin shrinking in absolute terms by 2020.”