b'APRIL 2021 APRIL 20213)Increased Productivity - Migrants create jobs This paper draws from detailed research undertaken they dont take them - migrants generate morefor the Commonwealths Intergenerational Report 2015, tax revenue because of their high levels of tertiarythe Productivity Commission as well as the Shaping the education, income, skills and relatively low age. TheNation Report undertaken by the Lowy Institute. BIS Oxford Economics report finds that migrantsIn the property sector, the impact of COVID-19 has positively contribute to the productive capacity ofbeen most severely felt among the providers of student the economy, thus increasing per capita income andaccommodation, the rental property sector (particularly Tom Forrest average household incomes.Chief Executive Officer apartments located close to universities), in the demand Urban Taskforce Australia Impact of COVID-19 for serviced apartments (often the first point of landing for temporary and permanent migrants as well as COVID-19 saw Net Overseas Migration turn negativebusiness visitors).Introduction with a near complete drop off in all forms of permanentPrice rises for new homes have been driven by low Few politicians or policy makers have clearly articulatedThe report paints a grim economic picture for thosemigration, the return to home of many temporaryplanning approval numbers and the resultant low levels the economic rationale for increased migration. As wewho would advocate for a smaller Australia through amigrants (students, skilled workers on 457 visas andof supply. This is not a reason to curb immigrationface the post COVID-19 recovery, Australia is in need ofreduction in migration, even on a temporary basis. seasonal workers), offset by Australia citizens workingthat would be to punish the entire economy because economic growth for two reasons: firstly, the Australianoverseas (ex-patriots) returning to Australia. of the failure of the planning system to deal swiftly with Government (and the States) have incurred recordThe report also debunks the assertion that migrantsPrior to COVID-19, the cap on permanent migrantschanging circumstances.levels of debt to get us through the impacts of COVID-19are a burden on the financial resources of government.was reduced from 190,000 to only 160,000. In 2020, thisSome local councils in Greater Sydney, with an eye on in 2020. But this will need to be re-paid. Secondly,To the contrary, due to their high levels of workforcenumber reduced to almost zero. Further, Australia hasthe upcoming local government elections in September the principal contributor towards economic growthparticipation and lower average age (compared to thenot been meeting its cap since 2016. This had a negative2021, have used the reduced immigration during the since the early 1990s has been population growth andexisting Australian population), and higher levels of skillsimpact on economic growth in that period. COVID-19 period to reduce planning targets for more without migration, we would be going backwards. and education, they are significant contributors to thehousing. It is this politically expedient myopia which has government coffers. Skilled migrants make up the vast majority ofcreated the dangerous price bubble we see today. A The issue of migration has proven to be politically vexedEconomic Growth is made up of the three Ps:permanent migrants to Australia. Overseas studentsreduction in the future pipeline for housing is a double over the past twenty-five years. Throughout the 1970sPopulation growth; the Participation rate andcontribute significantly to the economy. The not onlywhammy for the NSW and Australian economy. Lower until well into the 1990s, there was essentially a bi- Productivity Growth.bolster the education sector, but the pay rent and aresupply will mean reduced affordability while reducing partisan approach to immigration. A big, multi-culturalhigh consumers of good and services. the economic growth potential for the nation. Australia was broadly supported by both sides ofNet overseas migration is made up of a combinationThe impact of the drop off in Net Overseas Australian politics. of: temporary migrants (overseas students; temporaryMigration numbers is detailed in Section 3.1 of theThe policy imperative must be reversed. Change the Since this time, there has been debate on migrationskilled workers and seasonal workers); and permanentBIS Oxford Report. planning system to build in flexibility to cater for a rapid numbers, often confused by reference to refugees which inmigrants (skilled migrants, business migrants, familyreturn of migrants to our economy, thus giving us some fact comprise only a very low percentage of migrantsreunion and refugees).The Governments own figures paint a grim picture.chance to raise the revenue needed to pay off the to Australia. Those that depart our shores represent a negativeThe cut in Net Overseas Migration with the associatedCOVID related government debt and fund the full range contribution for Net Overseas Migration. gradual forecast return to pre-COVID levels will result inof services to ensure the baby boomer generation is Urban Taskforce commissioned an independent analysisWhen the details are considered, it is clear that overseasa reduction in the working age population of a massiveproperly cared for as they approach their senior years.from BIS Oxford Economics to establish a core set of baseimmigration contributes positively and substantially to822,000 by financial year 2024, relative to the pre- Urban Taskforce pays tribute to the sponsors of this facts relating to migration and the Australian economy.each of the three Ps that make up economic growth. COVID-19 predictions. The loss of economic potentialresearch, Meriton and Ceerose. The importance of This research paper which follows seeks to unpack thefrom the drop in immigration is substantial. The clearreturning migration numbers as soon as possible is economics of immigration and its contribution to1)Increased Populationwith declining rates ofpolicy imperative is for Governments, at State andcritical for the property development and construction economic growth. natural births, migration has been the key source ofFederal level, to pro-actively return to pre-COVID levelssector, which across the sectors, employs over 10% of The independent economic analysis undertaken by BISpopulation growth. The BIS Oxford analysis finds thatof Net Overseas Migration as soon as safely possible, asthe entire workforce.UrbanIdeasOxford Economics finds that migration has played a57% of annual population growth between 2000 andfurther, increase those numbers to help make up for the pivotal role in Australias economic development. Net2020 was due to migration. lost economic potential.Overseas Migration has been responsible in the first2)Increased Participation Rate: we need moreThe BIS Oxford paper examines the economic impact generation of migrants, for 20% of the nations increasemigrants to improve the ratio of tax-payers to nonof a long-term reduction in immigration numbers. While in productive capacity over the last 20 years. Thistax-payers (which is in long term decline acrosslower immigration numbers might be attractive for number substantially increases once you include theAustralia). Skilled migrants have a participation rateproponents of the Australias cities are full theory, the economic contribution of second-generation migrantsin the workforce of 92% (compared to only 66% of theconsequences for the economy and for our capacity to who have permanently settled in Australia. entire Australian population of working age). fund the fiscal gap created by our ageing population are profound. We have to adjust the way we think about Major Sponsor: our cities and our suburbs to cater for this economic imperative. The economy needs immigration.Sponsor: Magazine design by:Illustrations by:3Claudia Iacovella Simon Matthews'