Australia HCDROPS

The facts

Over the last few years, our immigration numbers have been hovering around the 400,000 every year. Some years have been slightly higher and other years somewhat lower. 40 years ago our population was 12.6 million people. Today it is over 22.7 million. If we continue steadily to grow at the same rate, we will reach 40.6 million in 2050, which is bigger than the 36 million big Australia projection. So it looks like, whether people like it or not, Australia is on track to become a “Big Australia” anyway.

Currently baby-boomers are beginning a “mass retirement” starting from 2012. Those who retire before 2020 are more likely to rely on the government pension system as they won’t have enough compulsory superannuation. All these retirees will mean that we will need more workers to pay enough taxes to support the federal government pension system. So I see it as almost a necessity for the government to keep immigration at the current level, or even higher at least till 2020.

Australia has locked in over $830* Billion worth of investment for the years to come. We need to deliver the goods according to those contracts, but we don’t seem to have sufficient people to produce them all. Recently the heads of many major mining companies have been fiercely critical of the government’s red tape that restricts them from bringing employees into Australia to work. Some are suggesting we solve this problem by allowing large numbers of temporary guest workers to come into Australia to work. (Most property investors can understand the anxiety of the mining companies. It’s similar to when a property developer has pre-sold a 100 unit development to buyers, and now realises that there are not enough workers available to build them!)

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