DEMOGRAPHICS / MIGRATION POLICY
The Infrastructure Lag
Australia runs one of the highest per-capita immigration programs in the developed world, but state infrastructure budgets are structurally incapable of keeping pace.
The Commonwealth government sets the migration intake, reaping the immediate income tax rewards. The State governments must build the hospitals, schools, and transit systems to accommodate them, usually with a 5-10 year lag.
The GDP Illusion
While high net overseas migration (NOM) guarantees headline GDP growth, preventing technical recessions, GDP *per capita* has been in a sustained recession. The pie is getting bigger, but the slices are getting smaller.
The Infrastructure Deficit Tracker
Calculate the capital required to maintain current amenity levels for new arrivals.
Frequently Asked Questions
- Don't migrants pay taxes?
- Yes, they pay income tax to the Commonwealth. But the upfront capital cost of a new hospital bed or train carriage falls on the States immediately, creating a severe duration mismatch in the Federation's funding model.