Melbourne has become Australia's immigration capital, with nearly nine out of ten new residents arriving from overseas since the COVID-19 pandemic. According to an analysis of Australian Bureau of Statistics data by the Institute of Public Affairs, international arrivals accounted for 86 percent of Melbourne's population growth between 2023 and 2025.
During this period, Melbourne attracted approximately 350,000 net overseas migrants, representing 27 percent of all net overseas migrants arriving in Australia. This influx has significantly outpaced the city's natural population increase and internal migration. Melbourne recorded a natural increase of 86,580 people (births minus deaths) from 2023 to 2025, while a net 28,886 residents left the city for other parts of Victoria or interstate. Overseas migration thus outweighed natural growth by roughly four to one.
The largest groups of new arrivals came from India, China, the Philippines, and Sri Lanka. These migrants primarily settled in key growth corridors and urban centers, with about a quarter in inner Melbourne, 18 percent in the outer southeast, and 15 percent in the western suburbs. This concentration adds pressure to areas already contending with housing and infrastructure challenges.
Despite the high rate of overseas migration, Melbourne's fertility rate has reached a record low of 1.4 children per woman, well below the 2.1 replacement level needed to maintain population size without immigration. The western suburbs, often populated by younger families, showed the strongest natural increase, while established inner-eastern suburbs reported minimal natural growth.
These figures emerge as the Australian government faces increasing pressure to overhaul its immigration system. The Albanese government has pledged to reduce annual net overseas migration from approximately 300,000 to 245,000 in the current financial year and 225,000 in the subsequent year. Opposition parties and other groups have called for sharper cuts, citing concerns about population growth and infrastructure strain.
In response, the government is preparing to introduce migration reforms aimed at easing pressure on housing, infrastructure, and public services, while still supporting economic needs. The strategy involves tightening visa settings and improving oversight of temporary migration programs to bring arrival numbers closer to pre-pandemic levels. Treasury forecasts predict a gradual decrease in net overseas migration over the next few years.