There are two primary reasons why the federal government loves high immigration.
![](https://api.macrobusiness.com.au/wp-content/uploads/2024/03/CBA-GDP.png)
First, immigration boosts the economy, as measured by GDP. Running a high immigration strategy allows the government to claim that it is a competent economic manager, even when per capita GDP growth is negative (as it is currently) and individual living standards are declining.
![](https://api.macrobusiness.com.au/wp-content/uploads/2024/03/CBA-Quarterly-GDP.png)
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Second, immigration benefits the federal budget by increasing the labour force, personal income tax receipts, and corporate tax receipts (via the larger economy).