Australia's high immigration intake will boost GDP growth by 1 per cent each year for the next 30 years, according to a new briefing paper jointly prepared by Treasury and the Department of Home Affairs.

The report states that Australia's current immigration settings, which favour migrants of working age with sought-after skills, will offset some of the slowing impact of the aging population on the economy.

Immigrants are also expected to contribute more in tax than they claim in benefits, the report says.

"There has been much commentary in recent times on the availability and price of housing and the role that population growth and migration have played," the report states.

While high rates of immigration are expected to boost the economy, the report also acknowledges they put pressure on infrastructure and housing.

A large population brings challenges, such as "congestion, pressure on the environment, and additional demand in key markets like housing", the report said.

"These pressures exist regardless of migration, but a growing population exacerbates existing pressures, particularly if policy and planning efforts do not keep pace," the report cautioned.

"To fully reap the benefits of immigration and population growth, Australia must continue to explore and address these issues," the report states.

The report warns that cutting Australia's immigration intake could have "far-reaching effects" and significantly lower economic growth.

Click here to read the report 'Shaping a nation: population growth and immigration over time'.

Read more about housing affordability: 

First-home buyer numbers are up but affordability worse: REIA / Adelaide Bank report

Government inactivity contributes to affordability problems say HIA and Grattan

Land supply at heart of affordability challenge