Heads of biggest banks intervene in nation’s migration debate

The heads of Australia’s two biggest banks have made a rare intervention into the nation’s politically charged migration debate, challenging the Albanese government to set reliable immigration targets that would take pressure off the housing market.

As the Coalition spoils for a fight over the issue, Commonwealth Bank boss Matt Comyn told a committee hearing at Parliament House on Tuesday that predictable levels of migration would help housing supply and infrastructure keep up with demand.

Comyn’s comments were backed by Westpac boss Anthony Miller, who said that house prices would keep rising unless supply met the increased demands caused by population growth.

The nation’s four big banks are this week fronting an annual inquiry into their performance, as house prices grow at their fastest pace in two years, and rents continue to climb.

Comyn, questioned by Liberal MP Simon Kennedy on the link between house prices, infrastructure and immigration, volunteered that migration levels should be “in the order of 180,000 per annum”. “It gives both the Commonwealth and states the ability to plan for critical infrastructure, including housing,” he said.

The government forecasts net overseas migration should fall to 260,000 this financial year, while opposition Leader Sussan Ley has declared she would lower migration if elected. However, the Albanese government has overshot its forecasts every year since coming to office, and Labor does not have a four-year migration plan.

After Comyn’s appearance, the Commonwealth Bank clarified he was speaking specifically about Australia’s permanent migration intake, which for the current financial year has been set at 185,000 people.

Increasing supply was also key to improving housing affordability, Comyn said, but noted there were barriers to doing so.

“You need a lot of co-ordination 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.”

Westpac chief executive officer Anthony Miller said Comyn’s 180,000 target was “very close to right, if not right”. He told the same committee that immigration had an impact on the housing market.

“Population growth, whether that be natural or immigration, to the extent that they want to have access to property or own property does increase demand,” he said.

“And unless you solve by increased supply … that would put pressure on prices.”

Miller said a “happy balance” would ensure Australia had skilled migration to build infrastructure projects.

The Coalition is making immigration its next policy focus, pushed by conservatives who want to stave off a threat from One Nation on the party’s right, while its moderates are concerned about striking a balanced tone in multicultural communities.

Nationals Senator Bridget McKenzie on Tuesday said migration was “driving up housing and service pressures”. In the same interview, she added her concerns about migrants sharing Australian values.

“If you hate gay people and don’t think women should be the prime minister, you shouldn’t be here. If you’re going to burn our flag, you can stay where you are,” she said on Nine’s Today show.

Moderate Liberal senator Andrew Bragg, however, dismissed claims that lowering migration would solve the housing crisis.

“If you wound migration down to zero tomorrow, you [would] still be left with a thumping housing crisis,” Bragg told 2GB.

“We do want to have a sensible debate. Anyone who says that changes to migration is going to solve the housing crisis is not being genuine, because it’s one factor.”

Bragg said he thought immigration was too high, but said the “biggest link” between housing and immigration was the CFMEU pressuring Labor to restrict tradespeople coming to Australia.

“Most people accept that the Labor Party have done a bad job managing the migration system,” he said.

“I think we’ll be able to land something sensible … One outcome I want to see as shadow housing minister is to see visas for foreign tradies because we don’t want to let the CFMEU run the migration system.”

Opposition home affairs spokesman Jonno Duniam said the Coalition was working through its policy, but signalled it would not unveil target numbers until much closer to the next federal election, due by 2028.

“How you set the number is as important as the number itself, and Australians have lost faith in the government’s approach to this policy area,” he said.

“How many houses are we going to build in the next couple of years? How is our health system going to cope, how many extra beds are required to cope with the influx of people?

“Once you have these sorts of numbers, you can work from that to figure out the sort of number we should be working with.”

Home Affairs Minister Tony Burke said: “Our immigration program needs to be carefully tailored to the specific needs of the country.”

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