Federal government’s mass immigration program destroys state finances

By Leith van Onselen

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.

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