Sep 20 2018Add to Favorites
“Changes to visas for skilled workers have delivered an immediate hit to Australia’s population growth,” said Geordan Murray, HIA Principal Economist.
ABS data released today shows that Australia’s annualised population growth rate slowed for the fourth consecutive quarter.
“Australia’s overseas migration fell by 9 per cent since changes to visa requirements came into force in April 2017, slowing the population growth rate to 1.6 per cent,” Mr Murray added.
“In April 2017, Australia introduced a range of visa changes which have been successful in reducing the number of skilled migrants arriving in Australia.
“The current phase of Australia’s 28 years of continuous economic growth is built upon the arrival of skilled migrants. Skilled migration is necessary to offset the impact of our aging population.
“Looking domestically, states such as New South Wales and Victoria that have benefitted the most from overseas migration over recent years are now seeing population growth rates slowing.
“The slowing rate of population growth, while it remains high for a developed economy, will contribute to slower growth of household consumption.
“This means slower growth in sectors such as retail and residential building. Given that these two sectors are amongst the nation’s largest employers the risks presented a decline in population growth should not be underestimated,” concluded Mr Murray.
Over the year to March 2018, Victoria saw the strongest growth in population (+2.2 per cent), followed by the ACT (+2.1 per cent) and Queensland (+1.7 per cent). New South Wales was fourth fastest (+1.6 per cent) with Tasmania fifth (+1.0 per cent), Western Australia sixth (+0.8 per cent) and South Australia seventh (+0.7 per cent). The population of the Northern Territory has actually declined over the last two quarters and the annual rate of growth has slowed to 0.1 per cent. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Mar
Whilst overall consumer sentiment is cautious in the lead up to the Australian federal election, together with the media attention surrounding the decline in the housing market (compounding negative sentiment in the short term), we believe Australia’s domestic economy is heavily reliant on inflows of tax-paying skilled migrants to bolster the diminishing, younger tax payer-base. This is as a result of our top-heavy aging population.
Although I almost always invest personally in unlisted syndicated and direct property, this is generally in chunks of $100,000 or more and generally, our minimums for MP Funds Management are closer to $500,000. When rental income comes in from these investments, I like to have somewhere to invest it.
To me, wealth means feeling emotionally vibrant, empowered, healthy, happy; having time to spend freely doing things that fill me up emotionally, having strong relationships with friends and family and the people I love; being challenged, having a sense of achievement; giving back to the community, having a positive impact; having good hair and great shoes (!) and leaving a legacy.
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