Damon Mcknight
Australia has seen a recent uptick in emigration rates, with people leaving the country in the highest numbers since the pandemic. Several factors contribute to this trend, including the high cost of living, with increases in prices for essentials such as food, energy, and housing. This has led to a reversal of the post-pandemic student visa boom, with former students moving onto other visa categories or leaving the country. Additionally, the strong labour market in Australia has made it a desirable destination for migrants, but it has also resulted in locals moving to other states or countries in search of better opportunities and more affordable living. These factors present challenges for the government in managing population growth and migration systems.
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What You'll Learn
High cost of living
Australia has seen a rise in emigration, with people leaving the country in the highest numbers since the pandemic. One of the reasons for this is the high cost of living.
The cost of living in Australia has been increasing, with prices for food, energy, and housing on the rise. This has led to some immigrants deciding to return to their home countries, where they may be able to achieve a higher standard of living for a lower cost. For example, Sonya Chuhovska, who moved to Australia from Bulgaria almost ten years ago, is planning to move back due to the high cost of living in Australia. Chuhovska cites the ability to buy a house without a mortgage as a key factor in her decision, stating that in Bulgaria, a good house in a less developed suburb can be purchased for around $50,000.
The high cost of housing in Australia is a significant issue, with some migrants having less access to property and fewer liquid assets. This is particularly challenging for skilled immigrants, who may be sensitive to changes in the cost of living and may choose to leave Australia if it becomes less attractive compared to other countries. The issue of housing affordability is also impacting internal migration within Australia, with states like Queensland and Western Australia attracting more residents due to their better housing affordability.
The high cost of living in Australia is not unique to the country, as many nations are dealing with high inflation. However, this has had flow-on effects for housing and other costs in Australia, impacting the decisions of immigrants and residents alike. The government's response to the migration system and its impact on the cost of living remains to be seen.
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Better pay and job prospects
Australia has seen a surge in departures since the COVID-19 pandemic, with people taking advantage of the ease of travel restrictions. However, it is not just travel opportunities that are drawing people away from Australia. Many are seeking better economic prospects, with Australia's strong labour market attracting migrants who want to extend their stays to work.
A notable example of this is the recent influx of New Zealanders to Australia. Kiwis are leaving their home country in record numbers, with the lure of better pay and more robust job prospects in Australia being a significant pull factor. In the year ending in September, about half of the New Zealand citizens who left the country moved to Australia. This trend is expected to continue, with the New Zealand economy predicted to weaken further and the labour market already showing signs of decline.
The Australian government's response to the pandemic may also be a contributing factor to the country's appeal. While Australia's post-pandemic student visa boom is easing, many former students have transitioned to other visa classes, such as skilled worker visas. This suggests that Australia's handling of the pandemic and its economic recovery may have made it a more attractive destination for those seeking better job opportunities.
In addition to the pull factors of other countries, Australia's high cost of living is also a significant push factor for those leaving. Immigrants, in particular, are feeling the strain of rising prices for essentials like food and energy, as well as the high cost of housing. For some, the decision to leave Australia is driven by the desire to own a home without the burden of a mortgage, which is more achievable in other countries.
While Australia's strong labour market and robust employment growth are attracting some, the high cost of living is a concern for many, especially immigrants. This may lead to a "brain drain," with skilled migrants choosing to seek better economic opportunities elsewhere.
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Travel rebound
Australia is experiencing a rebound in travel, with an increasing number of people choosing to leave the country and not return as inbound and outbound travel recovers following the COVID-19 pandemic. This trend is not unique to Australia, with people around the world venturing out post-pandemic.
The leader of the travel industry's peak body commented on this phenomenon, attributing it to "renewed confidence in international travel" among Australians. Australians are exploring a wider range of destinations, from nearby cities to far-flung locales, and travelling more frequently. This surge in outbound travel from Australia can be understood as part of a broader context of post-pandemic travel recovery and changing preferences for exploration and adventure.
Several factors contribute to this travel rebound. Firstly, the strong labour market in Australia has made it attractive to migrants, who may extend their stays to work, contributing to the high number of departures. Additionally, the country's robust employment growth, with a year-on-year increase of 3.1% as of September, stands in contrast to the contracting employment market in neighbouring New Zealand, making Australia a desirable destination for those seeking better job opportunities and higher pay.
Moreover, the high cost of living in Australia, particularly the increasing prices of food, energy, and housing, has led some immigrants to return to their home countries. They seek more affordable options, such as Bulgaria, where the cost of living is significantly lower. This outflow of immigrants has contributed to the overall increase in departures from Australia.
The travel rebound in Australia has had economic implications. The federal government has predicted a sharp decline in migrant intake, halving in two years, as they overhaul the migration system. This could impact the availability of skilled labour, as employers may struggle to retain migrants who are sensitive to changes in the cost of living.
In summary, the travel rebound in Australia is characterised by increased outbound travel, driven by factors such as renewed confidence, the desire for exploration, and economic opportunities. This rebound has contributed to a dynamic visa system and had economic consequences, particularly in the migration and labour markets.
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Better housing affordability
The high cost of living in Australia has been a significant factor in people's decisions to leave the country. This includes rising prices for essential goods and services, such as food and energy, but housing affordability has been a particular concern.
Housing affordability in Australia has been a challenge for many, with some migrants and residents deciding to leave the country or move to other states in search of better housing options. Queensland and Western Australia, for example, have seen net increases in population due to interstate migration, with better housing affordability cited as one of the attracting factors.
Associate professor Anna Boucher, a global migration expert from the University of Sydney, noted the relationship between skilled immigration and access to housing. She observed that migrants in Australia tend to have less access to property and fewer liquid assets, which can make it difficult to purchase a home. This is further exacerbated by the high cost of housing in Australia, which has seen rising prices in recent years.
Sonya Chuhovska, who moved to Australia from Bulgaria almost a decade ago, shared her experience with housing affordability. She and her husband decided to move back to Bulgaria, where they could buy a house without a mortgage. Chuhovska noted that in Bulgaria, a good house in a less developed suburb could be purchased for around $50,000, which was a strong incentive to leave Australia's expensive housing market.
The issue of housing affordability in Australia has implications for the country's attractiveness as an immigration destination. While Australia has been a desirable location for skilled migrants, the high cost of living, particularly housing, could lead to skilled migrants choosing other countries with more affordable housing options. This could, in turn, impact the availability of skilled labour in Australia and affect employers who have invested in training and upskilling migrant workers.
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High population growth
Australia has been experiencing high population growth, with all states and territories recording expanded populations. Western Australia saw the biggest leap in annual population growth at 2.4%, followed by Queensland and Victoria at 1.9% each. This growth has been driven by a combination of factors, including inbound travel, student visas, and skilled migration.
However, there are concerns about the impact of high population growth on housing affordability and the economy. Demographer Mark McCrindle noted that better housing affordability in states like Queensland and Western Australia has attracted more residents. At the same time, the country's most populous states, New South Wales and Victoria, have experienced a net loss of residents to other states. This suggests that people are leaving these high-cost areas in search of more affordable housing options.
The high population growth in Australia has also been influenced by migration patterns. Former immigration department deputy secretary Abul Rizvi noted that the recent uptick in departure rates was inevitable given the number of people who had arrived. There has been a significant increase in student visa holders, with a peak of 673,000 in March 2025, and many of these students have transitioned to other visa classes, such as bridging visas and temporary graduate visas. This has contributed to the overall population growth in Australia.
While high population growth can indicate a thriving economy and attractive migration destination, it also presents challenges. Associate professor Anna Boucher, a global migration expert, suggested that skilled immigrants in Australia have less access to housing and less intergenerational wealth, which is a crucial factor in property purchases. This could potentially impact the country's ability to retain highly skilled migrants, as they may choose to leave if they feel they cannot build a secure future in Australia.
Additionally, high population growth can strain infrastructure, services, and the environment. It remains to be seen how the Australian government will address these challenges and ensure sustainable growth that benefits all residents.
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Frequently asked questions
People are leaving Australia due to the high cost of living. The country is experiencing increasing prices for essentials like food and energy, and especially housing.
In August, the total number of departures from Australia was 1,694,440, an increase of 11.7% from the previous year.
Australians are travelling to a wider range of destinations than in recent years. Many are also choosing to leave and not return, with some opting to move to neighbouring countries like New Zealand.
Former immigration department deputy secretary Abul Rizvi said that the uptick in departure rates was good news for the government, as it relieves pressure on the permanent migration system.
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