Opposition Leader Angus Taylor will use his Budget Reply on Thursday night to unveil a sweeping plan to tie migration levels directly to housing supply, as the Coalition sharpens its attack on Labor over the cost-of-living and housing crises.
Under the proposal, a future Liberal–National government would cap net overseas migration at the number of homes built each year, in what Taylor describes as a 'common sense' reset of housing and population policy.
'Australia should only bring in as many people as it can house,' Taylor will say.
'Under Labor, migration has run miles ahead of housing and that puts pressure on rents, house prices and on every young Australian trying to get ahead.'
The policy sits at the centre of the Coalition's broader economic pitch, which it will formally outline in the Budget Reply.
The opposition argues Labor's spending and housing policies have worsened affordability, driven up rents and left home ownership further out of reach.
Taylor said the Coalition would link migration intake to completed housing stock through an annual reporting mechanism.
The Housing Minister would report the number of homes completed each year, which would then determine the migration cap for the following year.
Angus Taylor (pictured) will outline the Coalition's migration plan in his budget reply speech
Rents are expected to go up after the Albanese government's changes to negative gearing
'If Australia builds more homes, the migration cap can rise. If Australia does not build enough homes, migration must come down,' Taylor will say.
The Coalition claims a gap has opened between population growth and housing supply under Labor.
It points to figures showing population growth of 1.8 million people since the government took office, including roughly 1.4 million migrants, while housing construction has not kept pace.
'This is about mass migration running ahead of the homes, roads, hospitals, schools and services Australia can provide,' Taylor will say.
'Australians can see the housing crisis every weekend.'
Alongside the migration cap, the Coalition will propose a $5 billion Housing Infrastructure Fund aimed at unlocking up to 400,000 homes by funding basic services such as roads, water and sewerage connections.
The opposition says many developments are stalled because of a lack of essential infrastructure.
'Our plan is straightforward: only bring in who we can house, make homes cheaper to build, and get the roads, water and sewerage in the ground so homes can actually be finished,' Taylor said.
The Coalition immigration policy will link housing numbers to migration figures (file)
Critics say cash-strapped renters were largely overlooked in this year's Budget (pictured, Chalmers is welcomed by Anthony Albanese)
The Coalition will also pledge to cut building costs by winding back parts of the National Construction Code, which it argues has become overly complex and expensive.
It says removing recent changes, including energy efficiency requirements, could cut the cost of a new home by up to $70,000.
In one of most major announcements, the opposition plans to abolish several federal housing programs, including the Housing Australia Future Fund (HAFF) and Help to Buy scheme, arguing they add bureaucracy without boosting supply.
'Labor's answer to the housing crisis is more taxes, more bureaucracy and fewer homes,' Taylor said.
'Labor built bureaucracy, the Coalition will build homes.'
The migration cap proposal builds on the Coalition's earlier announcements to tighten temporary migration and prioritise skilled entrants, as well as broader measures linking migration settings to economic outcomes.
Taylor will frame the package as part of a wider push to restore living standards, positioning the Coalition as offering 'lower costs, more homes, stronger borders, secure energy and a fair go for Australians who work hard, save hard and want to get ahead.'