Prime Minister Anthony Albanese has defended his government's migration policy, saying it is 'working' despite overseas arrivals well above pre-pandemic levels and exceeding official forecasts.

Speaking to Sky News on Sunday, Albanese rejected criticism that net overseas migration remains too high, arguing the elevated figures are the result of a post-pandemic surge that is now easing.

'The fact is that Covid happened and the borders were shut,' he said.

'When the borders opened after Covid, you not only had tourists coming to Australia who weren't coming beforehand, you also had Australians coming home who were locked out.'

Australian Bureau of Statistics data, released this week, shows Australia's population grew by 412,500 people in the year to December 31, 2025.  

Net overseas migration accounted for 301,000 of that increase, nearly three quarters of the total, while natural increase contributed 111,500.

Although the migration figure fell about nine per cent from the previous year and is down more than 45 per cent from its 2023 peak, it remains significantly higher than pre-Covid levels.

Albanese acknowledged the numbers are still elevated but said the downward trend proves the government's approach is working.

'They are coming down… forty-five per cent is a pretty serious lower trajectory,' he said. 

'It will hit 225,000 over the next few years. That is what the objective is.'

The latest federal budget, however, projects net overseas migration of 310,000 in 2025–26, an increase on earlier estimates and well above Labor's longer-term target of 225,000.

Albanese blamed the Opposition for resisting measures to cut numbers, including proposed changes for international students. 

'The changes that we introduced, for example on students coming here, the restrictions and numbers, were opposed by all of the right-wing parties in the parliament,' he said.

Opposition Leader Angus Taylor said the figures show the government has lost control of migration and failed to meet its own targets.

'They've failed time and time again. They've missed every one of their targets. We've seen 1.4 million people coming in, in three and a half years,' he told Sky News.

'That's a number we've never seen before, and the ongoing numbers are way above what is sustainable.'

Taylor linked high migration levels to the housing crisis, arguing supply has failed to keep pace with population growth.

'Meanwhile, the housing supply numbers are below their own targets, so housing way below their targets, immigration way above,' he said. 

'Well it's no surprise that young Australians can't get into a home, and that's why we will establish a cap on migration.'

Shadow Immigration Minister Jonno Duniam earlier this week also challenged the government's claims, saying recent data contradicts its narrative.

'Labor keeps trying to tell Australians that the migration numbers are coming down, but the latest ABS figures again portray a very different story,' he said.

He criticised the government's reliance on comparisons with the 2023 peak.

'Labor cannot keep pretending that things are on the right path, particularly by citing the ridiculous statistic that they've brought the numbers down by around 45 per cent from the unprecedented peaks on their watch,' he said.

'The truth is that migration remains at levels never seen under the former Coalition government, and that these elevated levels have now been sustained for 14 straight quarters.'