Australia’s regional communities could absorb hundreds of thousands more people if the country overhauled its migration system, new research suggests, with overseas arrivals already accounting for almost half of population growth outside the major cities.
The findings have renewed calls for a more targeted approach to regional migration, as parts of rural and remote Australia struggle with ageing populations, labour shortages and declining birth rates.
Official figures show regional Australia grew by about 113,800 people in 2023-24, an annual increase of 1.3 per cent. Net overseas migration was the biggest contributor, adding roughly 68,000 people, while movement from capital cities accounted for a further 35,000.
The growth was uneven. Regional Queensland expanded by 1.8 per cent, followed by regional Western Australia at 1.5 per cent, regional Victoria at 1.2 per cent and regional New South Wales at 1.1 per cent.
The Gold Coast, Sunshine Coast and Geelong were among the fastest-growing regional centres. Overseas migration accounted for 77 per cent of growth on the Gold Coast, while internal migration was the largest contributor in the Sunshine Coast and Geelong.
Calls for a more effective regional migration system
Supporters of reform argue that Australia’s existing arrangements do not do enough to direct migrants towards communities that need workers, or to encourage them to remain there long term.
The Federal Government’s discussion paper on regional migration said the system should be tailored to local skills shortages while remaining straightforward for migrants, employers and communities to navigate. It also warned that migration planning needed to take account of housing, infrastructure and access to services.
Regional Australia Institute figures show overseas migration contributed 55.4 per cent of regional population growth in the year to 2024, despite regional areas receiving only 16.7 per cent of Australia’s overseas arrivals.
The institute said regional Australia’s population had risen from 9.78 million in 2023 to 9.91 million in 2024. Internal migration from capital cities contributed 38,217 people during the period, while net overseas migration added 72,808.
Its analysis also highlighted an acute demand for workers, with tens of thousands of jobs advertised across regional, rural and remote Australia, including positions for doctors, teachers and tradespeople.
However, the research warned that migration alone would not solve the challenges facing smaller communities. Housing shortages, weak transport links, limited healthcare and a lack of childcare could prevent regions from attracting and retaining both migrants and Australians moving from the cities.
Remote and very remote areas continue to face the greatest difficulty in sustaining their populations, while some regions are recording more deaths than births. In several parts of New South Wales and Victoria, internal migration outflows have contributed to continuing population decline.
Advocates say a long-term national population plan, linking migration settings with infrastructure and workforce needs, would allow regional communities to benefit more fully from future population growth.
