‘Big catch-up’: Migration intake soars to highest level ever recorded as foreign students, backpackers arrive in droves

Australia’s migration intake has soared to its highest level ever recorded after Covid-era border policies were scrapped.

Australia’s annual migration intake has rocketed to its highest level ever, with a “big catch-up” of foreign students and backpackers arriving in droves after Covid-era border closures were scrapped.

Fresh data, released by the Bureau of Statistics on Thursday, revealed net overseas migration – the difference between the number of arrivals to Australia staying 12 months or more, and the number of permanent and long-term departures – vaulted to 518,000 in the year to June.

Of the 737,000 migrants arrivals for the year to June 2022, temporary visa holders made up the lion’s share, with almost 554,000 international students, skilled workers on short-term visas and working holiday-makers travelling to Australia.

219,000 migrants departed Australia, the statistics reveal.

Australia’s annual migration intake surged to 518,000 in the year to June, the highest ever. Picture: NCA Newswire / Gaye Gerard

Economists have attributed the post-pandemic migration influx as the key driver of the country’s continued economic growth.

While GDP growth per person has gone backwards in the last six months, migrants have helped bolster spending and the red-hot jobs market.

But in recent months, the issue of immigration has become politically fraught with the Coalition accusing the government of pushing a “Big Australia” agenda, driving a sharp rise in rents in capital city markets and adding to inflationary pressures.

The government has hit back at the assertion, claiming that the spike in international arrivals has made up for the fall in migration experienced during the coronavirus pandemic.

“Our total net overseas migration since 2019-20 is 177,000 people fewer than was forecast before the pandemic,” Treasurer Jim Chalmers told reporters in Canberra on Thursday.

“There was a big catch-up in net overseas migration last year.

“That was overwhelmingly a story about students, international students, but also a story about tourists, and both of those cohorts play an important role in our economy.”

On Monday, Home Affairs Minister Care O’Neil unveiled the Albanese government’s new migration strategy. Picture: NCA NewsWire / Martin Ollman

On Monday, Home Affairs Minister Clare O’Neil released the government’s long-awaited migration strategy. The blueprint is designed to crimp the intake of temporary migrants and international students to make way for skilled workers in a bid to plug chronic workforce shortages across the economy.

Mid-year budget forecasts, released by Dr Chalmers on Wednesday, showed net overseas migration for the current financial year was forecast to drop to 375,000. However, this estimate was 50,000 higher than was originally anticipated in the federal budget earlier this year.

Net overseas migration is expected to moderate further over the four year forward estimates period, dropping to 250,000 in FY2025, the budget documents showed.

Historically, migrant arrivals to Australia have outstripped departures, with immigration being a significant driver of Australia’s population growth.

In the years preceding the global pandemic Australia’s net overseas migration intake was almost half of current levels, averaging approximately 216,000 a year in the decade to 2019.

When Australia’s borders were slammed shut in March 2020 it became almost impossible for nonresidents to travel to Australia, pushing net overseas migration to a net loss of 85,000.