WA tops national population growth

Australia’s population has recorded its fastest growth in 15 years as overseas immigration surged with WA achieving the most rapid growth of any state.

WA’s population grew by 2.3 per cent in the year to December 2022 compared to national growth of 1.9 per cent, the highest seen since 2008.

While high population growth is normally seen as a positive, as it stimulates consumer and housing demand, the current trend has added to concerns about the national housing shortage.

The Bureau of Statistics’ head of demography Beidar Cho said the key driver behind the high national growth was overseas migration.

"Recovery of international student arrivals is driving net overseas migration to historic highs, while departures are lagging behind levels typically seen over the past decade,” Ms Cho said.

“This pattern is expected to continue as international students return following the reopening of international borders, however there are fewer students ready to depart because very few arrived during the pandemic.”

While net overseas migration added 387,000 people to Australia’s population last year, natural increase (births minus deaths) added an unusually low 109,800 people.

This was down 23 per cent on the prior year, with the ABS saying COVID-19 mortality was the main contributor to an increased number of deaths and lower natural increase in 2022.

WA’s annual growth rate of 2.3 per cent equated to an extra 62,700 people, lifting the state’s population to 2.82 million – which is 10.7 per cent of the national total.

This growth put WA just ahead of Queensland (2.2 per cent) and Victoria (2.1 per cent) while Tasmania was the laggard with annual growth of just 0.5 per cent.

Queensland is traditionally Australia’s fastest growing state, courtesy of high interstate migration from the southern states.

WA’s high growth reflected contributions from three sources – net overseas migration added 37,910 people, natural increase added 14,164 people and net interstate migration added 10,593.

Notably, WA was one of only two states (with Queensland being the other) to achieve significant growth via net interstate migration.

As well as leading on annual growth, WA led on quarterly growth.

The state’s population was up 0.64 per cent in the December quarter, or 17,900 people, compared to national growth of 0.5 per cent.

WA’s quarterly growth came from net overseas migration (up 11,727), natural increase (3,074) and net interstate migration (3,113).

The data reveals some major shifts from long-term patterns.

The quarterly overseas migration was the highest since 2013 and followed negative growth during the COVID years, of 2020 and 2021.

Net interstate migration to WA has been consistently positive for the past three years and followed seven years of net population loss.

WA's Department of Treasury expects the state’s strong population growth to be short lived.

In this year’s budget papers, it said WA’s annual population growth rate was projected to gradually ease, from 2.0 per cent in FY23 to 1.6 per cent in FY26.

That is below the long-run average of 1.7 per cent.

Treasury expects overseas migration flows to return to normal and net interstate migration to ease in line with moderating labour market conditions.