Immigration numbers a third higher than promised despite Anthony Albanese vow to cap overseas student numbers
In the year to May, 447,620 migrants moved to Australia on a permanent and long-term basis, with this period covering the federal election.
This was 33.6 per cent higher than the 335,000 level Treasury forecast for the 2024-25 financial year that ended in June, new Australian Bureau of Statistics data has revealed.
While net immigration levels moderated to 340,800 in 2024, almost in line with March pre-election Budget projections, there was a big influx in February for the start of the university year.
During that month, 159,610 migrants moved to Australia but when permanent and long-term departures were factored in, the monthly net immigration level was still high at 111,740 during a housing crisis.
This occurred after Coalition senators last blocked Labor's plan to cap new international enrolments at 270,000 for 2025.
With Parliament resuming next week, the federal government is expected to introduce new legislation to cap international student numbers but Labor would need the support of the Greens to achieve this.
Overall immigration numbers are lower than the record-high levels of 548,800 reached in the year to September 2023.
But Australia is still in the midst of a housing crisis with just 179,410 new homes completed in the year to March, which would barely cover the immigration influx based on households having 2.5 people on average.
The capital city rental vacancy rate stood at just 1.3 per cent in June, new SQM Research figures showed.
The cities receiving the biggest influx of overseas migrants ironically had the highest rental vacancy rates, with Sydney having a 1.6 per cent level, compared with 1.8 per cent for Melbourne.
Rental vacancies were tighter in cities receiving a large intake from interstate migrants, with Brisbane at 0.9 per cent and Perth at 0.8 per cent.
SQM Research managing director Louis Christopher said building activity was failing to keep pace with rapid population growth.
'Most regions still show signs of stress, and the recent spike in dwelling approvals needs to translate into physical supply before rental conditions meaningfully improve,' he said.
The Institute of Public Affairs think tank's deputy executive director Daniel Wild said the net intake of 33,230 in May was a record high for that time of year, and was worsening Australia's housing crisis.
'Out-of-control migration intakes, and housing shortfalls, are making it impossible for Australians to get ahead,' he said.
'Excessive migration has played a significant role in pummelling Australia's economic productivity, creating extended periods of negative per capita economic growth, and exacerbating the housing and rental crises being experienced by Australians and new migrants alike.'
Australia was in a per capita recession from early 2023 until the September quarter of 2024, where output for every Australian went backwards.
Gross domestic product per capita shrank again in the March quarter of 2025.
'The federal government has overseen negative per capita economic growth in nine of the last eleven full quarters recorded since May 2022,' Mr Wild said.
'As the federal government has relied on the lazy approach of migration to keep the aggregate economy afloat, the overall economic pie has grown at a headline level but has left individual Australians with an ever-shrinking slice.'
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