Commonwealth Bank boss calls for migration cut to help address housing crisis

The chief executive of Australia's largest bank has called on the federal government to reduce migration by tens of thousands of people a year to help the nation combat the housing crisis.

In an appearance before a parliamentary economic committee this morning, Commonwealth Bank boss Matt Comyn said a consistent, long-term immigration target would help authorities meet housing demand.

"I have this personal view, I think, where there is a predictable level of migration, perhaps that number is something in the order of 180,000 per annum, that gives both the Commonwealth and states the ability to plan for critical infrastructure, including housing," he said.

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The federal government's current permanent migration intake target is set at 185,000 per year, but the actual number of people arriving in Australia is higher due to the likes of international students who do not stay permanently.

The federal budget has forecast migration will reach 260,000 this financial year – well down from the peak of more than 500,000 immediately after the pandemic, which in turn followed a period of negative net migration – before easing further to 225,000.

While the federal opposition is set to start pressing for a much larger decrease in migration, Immigration Minister Tony Burke has previously said there's no "magic number" that Australia should aim for.

In an appearance at the National Press Club last month, he pointed to the balancing act of not wanting to put too much demand on infrastructure while at the same time ensuring there are enough essential workers, including in areas such as construction.

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"The principle you need to start with is making sure that our immigration system is tailored to the needs of the nation," he said, adding that "an argument about immigration can be had in a civil way".

"But to have the argument about total numbers, without saying where you want to cut, is spin without any substance at all."

Moderate Liberal senator Andrew Bragg today warned against viewing cutting migration as a silver bullet for Australia's chronic shortage of homes.

"It should not be seen that cutting migration is going to solve the housing crisis," he said.

"That is a massive lie."

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Comyn acknowledged there are a range of other factors at play, including a lack of overall supply.

"You need a lot of coordination between the federal and the state level," he said.

 "I think the availability of labour, of skilled labour in and around multiple sectors, including this one, is challenged."

He also said the level of housing credit – which is growing at 6 per cent per year – needs to slow, and threw his support behind the government's construction targets, even though they appear all but certain to be missed.

"I think stretching an ambitious target is a good thing," he said. 

"Perhaps it may at times be politically unwise but, certainly inside an organisation, targets – even if they are aspirations – if they are well designed, they are appropriate."

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