Figures released by the Australian Bureau of Statistics today show that Australia’s population increased by 348,700 people in the year ending September 2016, but there are wide divergences between the growth rates in the various states and territories, said the Housing Industry Association (HIA), the voice of Australia’s residential building industry.

“Overall, the rate of population growth increased slightly during 2016. The population grew by 1.5 per cent in the year to September 2016, which is up slightly from 1.4 per cent recorded in the year to September in 2015. The stronger rate of growth was driven by both a stronger contribution from natural population growth and a stronger contribution from net overseas migration,” said economist Geordan Murray.

“Natural population growth (births minus deaths) added 155,472 people to the population over the year to September 2016, which was around 5.1 per cent higher compared with the previous year. Net overseas migration (incoming minus outgoing migrants) contributed 193,223 people to the increase over the year ending September 2016, which was around 9 per cent higher compared with a year earlier.

There were wide divergences in the rates of population growth around the country. Victoria led the way with growth of 2.1 per cent. This was followed by the ACT (1.5 per cent), New South Wales (1.4 per cent), Queensland (1.4 per cent), Western Australia (1.0 per cent), South Australia (0.6 per cent), Tasmania (0.5 per cent) and the Northern Territory (0.3 per cent).

“The majority of the growth in population attributable to overseas migration is occurring in the eastern seaboard states, which underpins the strong growth in these jurisdictions. Over the year to September 2016, 40 per cent of the growth due to net overseas migration occurred in New South Wales, while a further 36 per cent occurred in Victoria and 11 per cent occurred in Queensland.

“Interstate migration is also playing an important role in the divergent rates of population growth around the country. The overall flow of interstate migration within Australia has been particularly strong in recent quarters, although the flow eased slightly in the September 2016 quarter. The eastern seaboard states continue to be the main beneficiaries of interstate migration.

“Queensland was the big winner in the interstate migration stakes during the September 2016 quarter. The state has seen a gradual improvement in interstate migration flows since mid-2015 and the September 2016 quarter was the highest level recorded since 2008.

“There were also improvements in interstate migration flows for NSW in the September 2016 quarter. While NSW still recorded a net outflow of residents to other states, the scale of the outflow dropped markedly. In contrast Victoria has seen large net inflows from other states in recent quarters, but the net inflow was down compared with the previous quarter.

“As the age profile of Australia’s population becomes increasingly skewed towards older age groups, population growth and migration will become ever more important in ensuring Australia has a workforce capable of maintaining the nation’s ongoing economic prosperity. It is important that policy makers today are planning for this future,” concluded Geordan Murray.

See also:

Breaking population records

Melbourne remains the powerhouse of population growth

Two-tier property market highlights differences around the country