Migration accounted for 46.2% of regional Australia’s population growth in 2025, highlighting the growing role of overseas migration in communities outside the capital cities.

New research from the Regional Australia Institute found that the largest group of overseas migrants arriving in regional areas was aged between 25 and 44. The institute says stronger regional migration pathways could help address workforce shortages and support economic activity.

Regional Australia received just over 17% of overseas migrants in the 2024–25 financial year, despite accounting for 36.3% of the national population, according to the institute’s Regional Population Planning report.

The report says current policy settings are expected to direct 28% of Australia’s population growth to regional areas. Its modelling suggests that share could rise as high as 72% under a “nation-building” approach that gives regional Australia a much larger role in future population planning.

The institute argues that migration is increasingly important as regional communities face ageing populations, skills shortages and pressure on essential services. It is calling for more regional migration pathways to be considered alongside housing, infrastructure, employment and settlement planning.

Healthcare services have also warned that reducing migration could worsen workforce shortages in regional communities, where international workers already play an important role in filling jobs that cannot always be filled locally.

The research adds to the broader debate over how Australia should distribute future population growth, with the institute arguing that a greater share of migration could help regional communities grow while easing some pressure on major capital cities.

Sources: AAP News / Regional Australia Institute