Melbourne is crowned immigration capital of Australia as shock data reveals 86 per cent of new residents are from overseas

By NICHOLAS COMINO, POLITICAL REPORTER, AUSTRALIA Published: 02:51, 23 August 2026 | Updated: 02:51, 23 August 2026 Nearly nine in ten new residents to Melbourne since the pandemic are from overseas as startling research shows international arrivals have outpaced local births. Australian Bureau of Statistics data, analysed by conservative think-tank the Institute of Public Affairs, found almost 350,000 net overseas migrants settled in Melbourne between 2023 and 2025, accounting for 86 per cent of the city’s population growth. The figures show Melbourne attracted 27 per cent of all net overseas migrants arriving in Australia, making the city the most popular destination for overseas arrivals. The report lands as the Albanese government faces increasing pressure ahead of a major overhaul of the immigration system.  Immigration Minister Tony Burke has previously pledged to cut annual net overseas migration from around 300,000 to 245,000 this financial year and 225,000 next year. The data reveals that international arrivals have overtaken natural population growth and internal migration. Melbourne recorded a natural increase of 86,580 people between 2023 and 2025, measured as births minus deaths. Over the same period, a net 28,886 residents left Melbourne for regional Victoria or interstate. Nearly nine in ten new residents to Melbourne since the pandemic are from overseas as startling research shows international arrivals have outpaced local births (stock image) This means overseas migration outweighed natural population growth by about four to one, showing how the city’s expansion now relies more on international arrivals than on increasing birth rates. India contributed the largest migrant cohort, followed by China, the Philippines and Sri Lanka. New arrivals concentrated in key growth corridors and urban centres, with about a quarter settling in inner Melbourne, 18 per cent in the outer southeast and 15 per cent in the western suburbs. The influx adds more pressure to areas already facing housing and infrastructure strain.  While migration powered most population growth, Melbourne’s outer suburbs still saw the highest birth rates. The western suburbs had the strongest natural increase, adding almost 29,000 people through births exceeding deaths.  This reflects the younger makeup of many outer suburban communities, where larger families are more common. In contrast, the city’s established inner eastern suburbs reported virtually no natural growth, adding just 17 people through natural increase over the two-year period. Melbourne’s fertility rate has fallen to a record low of just 1.4 children per woman (stock image) The latest figures also show Melbourne’s fertility rate has fallen to a record low. Women are now expected to have, on average, 1.4 children, below the replacement rate of 2.1 needed to maintain population without migration. Both the Coalition and One Nation have called for permanent migration and net overall migration to be lowered, accusing the government of failing to meet its own migration reduction targets.  The Albanese government is preparing to unveil a new package of migration reforms as it faces growing pressure over Australia’s population growth and increased political concern about One Nation’s rising support.  Rather than cutting migration sharply, the government’s strategy centres on bringing arrivals back towards pre-pandemic levels, after net overseas migration stayed above 300,000 a year.  Treasury forecasts show net overseas migration is expected to fall to 245,000 in 2026–27 before dropping further to 225,000 in the following years.  Ministers have argued the reduction can be achieved through tighter visa settings, stronger compliance and stricter oversight of temporary migration programs, while still ensuring businesses can get the workers and skills they need.  The planned reforms are designed to ease pressure on housing, infrastructure and public services without undermining the economic benefits migration delivers to Australia.