In 2018, then Treasurer Scott Morrison made headlines when he claimed Tony Abbott’s proposal to cut Australia’s permanent migrant intake by 80,000 to 110,000 would cost the Federal Budget “$4 billion to $5 billion over the next four years”, arguing “the economy (would not be) growing at the same level and people who come as skilled migrants pay taxes, make a net contribution to the economy”.
It is unambiguously true that immigration provides net benefits to the Federal Budget. The federal government collects more than 80% of Australia’s tax revenue, and therefore collects the lion’s share of the financial benefits that come with immigration, such as increased personal and company taxes.