Australia’s immigration Ponzi scheme

Australia has announced plans to restrict some skilled migrants from living in its largest cities.

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Sydney: Australia's top destination for migrants
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Australia has announced plans to restrict some skilled migrants from living in its largest cities in an effort to "ease urban congestion and encourage skilled workers into struggling towns", says the Daily Telegraph. The proposal which critics say may not be legal or enforceable would add visa conditions that prevent some new arrivals from settling in Sydney, Melbourne or Brisbane for up to five years. Last year, 186,000 migrants arrived in Australia, of whom most moved to Sydney or Melbourne. Around 40% would be affected by the new rules.

Regardless of this proposal, it's clear that Australia needs to overhaul its approach to immigration, says Salvatore Babones in Foreign Policy. Its population has grown by nearly 45% since 1991. "No other major developed country even comes close to that rate."This has boosted growth, but a continued reliance on adding more people "to float the economy and fund government budgets" risks creating "a giant immigration Ponzi scheme".

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Dr Matthew Partridge
MoneyWeek Shares editor