Sixty per cent of Australia's population growth in the past decade has come from migration.

Sixty per cent of Australia's population growth in the past decade has come from migration.Credit:James Alcock

That extra 2.2 million people have been an economic powerhouse,requiring homes,cars,food and every day goods and services while also contributing fresh skills to the jobs market.

But it has come at a price,particularly in Sydney and Melbourne. Be it via higher house prices or over-crowded schools,all levels of government have struggled to keep up with the demands of a growing population while reaping the economic benefits of that population.

The Morrison government made much of its decision in last year's budget to cap permanent migration at 160,000 for four consecutive years as dealing with the congestion pressures on our big cities.

That cap didn't include the hundreds of thousands of temporary migrants – be it students or workers – who help run the economy and add to demand.

But with the borders shut,international students stuck in their home countries and immigration all-but impossible,the issues around migration and Australia's dependence on it cannot be ignored.

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The government is now expecting net overseas migration – which was forecast to reach 271,000 in 2019-20 – to be 30 per cent lower. Next year,the drop is tipped to be 85 per cent.

Combined,that's close to 300,000 missing shoppers,students,family members and skilled workers from the economy.

With temporary workers leaving the country and others unable to get in,population growth is likely to stall. Sydney could shrink while Melbourne's stellar growth of recent years will be muted,with serious economic repercussions.

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Australia will,post-virus,remain a desirable destination for permanent migrants,temporary ones and international students.

The Morrison government's economic rebuilding plan will have to include a discussion around the nation's dependence of immigration.

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