Diminishing Australia: FECCA Responds to the Coalition’s Budget Reply
Attempts by the Coalition and One Nation to blame migrants for housing pressures are divisive, unsupported by evidence, and ignore the enormous contribution migrants have made and continue to make to Australia’s workforce, infrastructure, economy, and national development.
Housing:
FECCA rejects Angus Taylor’s claim that Australia’s housing crisis has been caused by migrants. Australia’s housing challenges are the result of long-term systemic issues that have remained largely unaddressed for decades and cannot credibly be blamed on migration alone.
Migration rates are, in fact, falling significantly. Net overseas migration in 2022-23 was 538,000 and has since declined sharply: 2024-25: 306,000, 2025-26: 295,000, 2028-29: projected at 225,000 representing a substantial reduction in migration levels over time.
This is not mass migration; it is diminishing migration.
The Coalition’s proposal to tie migration intake to the number of new homes built each year oversimplifies a highly complex issue. Claims suggesting “one house per migrant” are baseless. Many international students live in shared accommodation, while many migrants live with family members or within existing households. Migration does not translate into a one-person, one-home equation.
Skilled Workers:
One Nation and now regrettably the Coalition appear to ignore the fact that skilled migration remains essential to Australia’s productivity.
Migrants fill critical shortages in health care, aged care, construction, engineering, technology, and other industries that are fundamental to Australia’s prosperity and future growth. At a time when Australia faces workforce shortages and an ageing population, migration is part of the solution not the problem.
In part, one of the reasons there has been a housing shortage is that we have not had enough people to build the housing stock so essential to fixing this problem. Migrants have been essential in the building and construction industry for at least fifty years.
The importance of Migrant Workers was acknowledged in the Government’s 2026 budget including an announcement of $27 million over two years from 2026–27 to extend the Protecting Migrant Workers program, to fund information and education grants, supporting targeted information and education activities for migrant workers on workplace rights and protections. Expanding Australia’s skilled migration program was also announced with the Government investing $85.2 million to fast-track migrant trades workers into the workforce.
Infrastructure & Economy:
Modern Australia has been built through migration. Migrants have played a central role in developing our nation’s infrastructure and economy, including landmark nation-building projects such as: the Snowy Mountains Hydro-Electric Scheme, the Ord River Scheme two major irrigation and power projects, and the Eildon Dam in Victoria.
International students also contribute billions of dollars annually to the Australian economy and are critical to the sustainability of universities, research, innovation, and local businesses.
Welfare:
Under the Coalition’s proposal only Australian citizens would be eligible for a range of welfare support. This ignores the fact that people in Australia on temporary visas and bridging visas pay tax when they earn income in Australia. This includes people on student visas, temporary skilled visas, working holiday visas and bridging visas while awaiting another visa decision.
When migrants work in Australia, they pay Tax and also pay GST indirectly through purchases like any other resident. They should be entitled to the benefits. Successful settlement outcomes require support, stability, and inclusion.
Quotes:
“Australia needs a balanced and evidence-based conversation about migration, housing, and economic development. Migration has helped build modern Australia. It has strengthened our economy, enriched our communities, and supported our national development, ” – Peter Doukas OAM, Chair of FECCA.
“Migrants contribute enormously to productivity, economic growth, and community life, but people must be supported through their settlement journey in order to fully participate and thrive, and to ensure the nation continues to prosper.” – Jill Morgan AM, Interim CEO of FECCA.
####
For media enquiries, please contact: media@fecca.org.au
