South Australian Premier Peter Malinauskas has delivered a strong defense of migration, warning that reducing immigration intake would exacerbate existing problems and arguing that skilled migrants offer a substantial economic advantage to the country. Speaking at the Sydney Institute, Malinauskas presented data suggesting that a primary skilled migrant contributes an estimated $415,000 to government finances over their lifetime in Australia, in contrast to the average native-born Australian, who costs the government approximately $85,000.

Malinauskas directly addressed concerns linking migration to affordability and public services. "Want more affordable housing? We need more sparkies, tilers, roofers and bricklayers. Want Mum and Dad to get an aged care bed? We need more trained care workers," he stated. He further emphasized that migration plays a crucial role in funding public services, asserting, "If you value public education and Medicare but worry about government debt, migration helps pay for it. It's that simple."

The premier pushed back against the political momentum for stricter migration policies, particularly those advocated by Pauline Hanson's One Nation Party, which has seen increased support since the May 2025 federal election. "I'm here to insist that Australians in positions of leadership must now be on stages like this one and explain how unreasonably slashing our immigration intake is not going to fix our problems," Malinauskas said, adding, "It is only going to make them worse." He characterized the political landscape as a "race to the bottom over who can cut migration the most is madness."

Malinauskas suggested that anxieties surrounding migration rates are more likely rooted in economic concerns, such as housing supply, rather than racial prejudice. This perspective comes as national debate intensifies, with One Nation linking migration rates to Australia's housing crisis and crime statistics.

While Home Affairs Minister Tony Burke has delayed an announcement on potential migration cuts, cabinet discussions are ongoing. Australia's net overseas migration has already decreased, falling to 301,000 in 2025, a 45% drop from the post-COVID peak in 2023 and a 9% decrease from 2024. One Nation has proposed a target of 130,000 visas annually, though their figures have varied. The Coalition has advocated for migration levels to be tied to the previous year's housing construction numbers and to incorporate a "values-based" immigration system. Opposition Leader Angus Taylor has argued that population growth, with 550,000 new migrants in a year compared to fewer than 200,000 homes built, is outpacing the nation's capacity to provide adequate housing and infrastructure.

Premier Malinauskas, however, disagreed with the Coalition's stance, emphasizing the need for a nuanced approach focused on skills shortages. "Australia doesn't really have a migration crisis so much as a housing crisis," he told ABC Radio. "If we have a housing crisis, we would do well to focus our skills policy on making sure that we're bringing in the very workers that we require in the housing and construction industry." He concluded that leaders have a responsibility to present robust economic arguments for a well-managed migration program that facilitates the entry of necessary workers.