Australian Opposition Proposes Migration Cap Tied to New Housing Supply
Australian opposition leader Angus Taylor proposed a 'one-for-one' rule that would only admit a new migrant for every new house built, in his budget reply speech. The proposal is expected to deepen the policy debate around the country's housing crisis. The government rejected the plan in strong terms.
Australian opposition leader and Liberal Party head Angus Taylor unveiled a 'one-for-one' framework in his budget reply that draws a direct line between the housing crisis and immigration policy. Under the plan, the number of migrants admitted into the country would be matched to the number of new homes completed each year. Taylor argued the rule would halt the rise in rents and the slide in home ownership rates.
The Labor government said the plan would deepen workforce shortages in sectors such as education, health and mining, and would cost billions of dollars on the revenue side of the budget. Treasurer Jim Chalmers said it would be unacceptable to reject highly skilled migrants.
In Sydney and Melbourne, a housing shortfall has pushed rents up by more than 30% over the past three years. The Productivity Commission projects that the government's new tax cuts may help bring home prices down over the medium term, while the opposition's plan would offer short-term relief by reducing migration but create labour shortages.
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