Would slashing migration tank the economy or reset Australia’s living standards? Canada may offer clues

Australia is grappling with a contentious debate over its migration policy, with starkly different visions presented by the Labor Party and One Nation. The question at hand is whether reducing net overseas migration would harm the economy or provide a necessary reset to improve stagnant living standards.

Pauline Hanson, leader of One Nation, recently proposed a plan to cut the number of temporary migrants in Australia by over 750,000 within three years. This would involve targeting international students and family members of skilled migrants, aiming for net overseas migration (NOM) to turn negative for three years before capping it at 130,000. In contrast, Labor's long-term NOM target stands at 225,000, with the last official estimate at 292,000 for the year ending March.

Tony Burke, the Home Affairs Minister, criticized One Nation's plan, stating it would "trash Australian services and trash the Australian economy." However, Hanson argues that high population growth has contributed to economic issues, asserting that "Australians have been in a per-capita recession for years" and that living standards improve when migration is reduced, citing Canada as an example.