Banking Sector Backs Predictable Migration Targets for Infrastructure Planning
CBA Chief Tells Parliament 180,000 Annual Migration Level Would Enable Federal-State Housing Coordination
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Australia should maintain predictable migration levels around 180,000 people annually to enable coordinated infrastructure and housing planning between federal and state governments, Commonwealth Bank CEO Matt Comyn told a parliamentary committee Tuesday.
The banking chief’s testimony addresses ongoing debate about optimal migration settings as Australia grapples with housing affordability pressures and supply constraints. Comyn emphasized that predictability in migration policy enables better planning for critical infrastructure including housing, even as he acknowledged demand and supply have remained “clearly in balance for some time.”
“I think where there is a predictable level of migration, perhaps that number is something in the order of 180,000 per annum, gives both the Commonwealth and states the ability to plan for critical infrastructure, including housing,” Comyn stated during testimony before the parliamentary banking committee.
The CEO’s intervention comes as policymakers debate migration settings in the context of severe housing shortages affecting major Australian cities. Critics have argued that elevated migration levels exacerbate housing demand pressures, while supporters emphasize economic benefits and labor market needs.
Commonwealth Bank serves approximately 16 million customers across Australia and holds substantial lending portfolios in residential mortgages and property development. The institution’s perspective on housing market dynamics carries weight given its market position and access to detailed transaction data.
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Committee questioning focused on how migration levels interact with housing supply targets and construction industry capacity. “Do you have any thoughts on housing targets given what you’re seeing on demand signals in your business, and specifically population growth and immigration levels?” a committee member asked.
The questioning addressed whether government housing targets appear achievable given migration patterns, lending volumes for new housing construction, and building cost pressures. Comyn acknowledged the challenge while supporting ambitious target-setting.
“I think demand and supply have clearly been in balance for some time,” the CEO stated. “That’s causing enormous difficulties.”
The banking chief characterized housing targets as important policy tools despite implementation challenges. “I think targets are important,” Comyn stated, positioning himself in support of ambitious goal-setting for housing construction.
The CEO’s emphasis on predictable migration levels reflects concerns about planning coordination between federal and state governments. Housing supply primarily falls under state government jurisdiction, while migration policy remains a federal responsibility, creating coordination challenges.
“I mean, the difficulty, if I could say, at the Commonwealth is to have the target,” Comyn stated. “You don’t necessarily have all the levers, so you need a lot of coordination between the federal and the state level.”
The banking chief indicated familiarity with state-level housing policies across Australia. “I mean, I’m familiar with many of the state’s policies,” Comyn stated. “I can see firsthand living in New South Wales. I know the Minns government are very focused on some of these supply side issues.”
The CEO acknowledged that addressing housing supply constraints involves complex challenges beyond simple policy directives. “They are not always easy to deal with,” Comyn stated, referencing obstacles facing state governments attempting to expand housing construction.
Comyn outlined multiple supply-side constraints affecting housing delivery. “Areas like rezoning, supply, yes, construction costs, some of the input prices, I think the sort of availability of labour, of skilled labour in and around multiple sectors, including this one, is challenged,” the CEO stated.
The banking chief’s reference to skilled labor shortages highlights workforce constraints affecting the construction industry. The sector has struggled to attract and retain qualified workers amid competing demands across multiple industries experiencing labor shortages.
Construction cost increases represent another significant challenge identified by Comyn. Rising input prices for materials and labor have compressed development margins and discouraged new projects, contributing to supply constraints that exacerbate housing affordability pressures.
The CEO characterized current housing targets as “stretching” but supported maintaining ambitious goals. “I think the target is stretching, but I think having a stretching and ambitious target is a good thing,” Comyn stated.
The banking chief acknowledged that ambitious public policy targets sometimes create political vulnerabilities. “Perhaps it may at times be politically unwise, but certainly inside an organisation targets, even if they’re aspirational, if they’re well designed or appropriate,” Comyn stated, suggesting that stretch goals drive better performance despite implementation challenges.
Committee members expressed concern about ensuring housing targets remain grounded in achievable implementation. “Look, I agree with targets. I just want to make sure we’re being honest if they’re achievable or not,” a committee member stated in response to Comyn’s testimony.
The CEO’s proposed migration level of approximately 180,000 annually represents a moderate position in current policy debates. Some advocates push for higher migration to address labor shortages and support economic growth, while critics argue for reductions to alleviate housing demand pressures.
Comyn’s emphasis on predictability rather than specific numbers reflects recognition that planning challenges stem partly from policy volatility. Governments have adjusted migration settings substantially in recent years, complicating long-term infrastructure planning.
The testimony occurs amid broader discussions about Australia’s housing crisis affecting younger Australians attempting to enter property markets. Housing affordability has emerged as a significant political issue with implications for intergenerational equity and economic productivity.
Commonwealth Bank’s lending data provides the institution with detailed insight into housing market dynamics. The bank finances substantial portions of both residential mortgages and property development projects, giving executives perspective on both demand and supply factors.
The banking chief’s testimony emphasized coordination challenges between federal and state governments as critical obstacles to addressing housing supply. Federal migration policy affects demand while state planning regulations and infrastructure provision determine supply capacity.
Comyn suggested that predictable migration settings enable state governments to plan infrastructure investments with greater confidence. Substantial lead times for major infrastructure projects including transportation, utilities, and community facilities create planning horizons extending years into the future.
The CEO’s reference to living in New South Wales provided personal context for observations about state government housing policies. The Minns Labor government has prioritized housing supply expansion, implementing planning reforms intended to facilitate construction.
The banking chief characterized supply-side barriers as complex and difficult to address through single policy interventions. Rezoning processes, development approval systems, construction industry capacity, and infrastructure coordination all factor into housing supply constraints.
Comyn’s observation about skilled labor shortages affecting “multiple sectors” acknowledges that the construction industry competes with other industries for qualified workers. Australia’s tight labor market creates bidding wars for skilled trades across various sectors.
The testimony provided Parliament with banking sector perspective on housing policy challenges. Committee members used the session to examine how migration settings, infrastructure planning, and construction industry capacity interact to affect housing affordability.
The CEO’s support for maintaining ambitious housing targets despite implementation challenges reflects organizational management philosophy valuing stretch goals. Comyn suggested that aspirational targets drive better performance even when full achievement remains uncertain.
However, the banking chief’s acknowledgment that targets are “stretching” signals realistic assessment of obstacles facing housing supply expansion. Construction industry constraints, planning system complexities, and coordination challenges between government levels create substantial barriers.
The proposed 180,000 annual migration level provides a specific benchmark for policy discussions. The number represents Comyn’s assessment of a sustainable level enabling infrastructure planning while supporting economic needs.
The testimony contributes to ongoing debate about optimal migration settings balancing economic objectives, housing affordability concerns, and infrastructure planning requirements. Policymakers face pressure to address housing shortages while maintaining migration levels supporting labor market needs and economic growth.
Commonwealth Bank’s market position gives the institution substantial influence in housing finance markets. The bank’s lending decisions affect both residential mortgage availability for buyers and project financing for developers, making executive perspectives relevant to policy discussions.
Comyn’s emphasis on federal-state coordination reflects recognition that effective housing policy requires alignment across government levels. Migration settings, planning regulations, infrastructure investment, and construction industry support all factor into housing supply outcomes.
The banking chief’s testimony provided specific policy input focusing on predictability and coordination rather than advocating dramatic policy shifts. The measured approach reflects financial institution preferences for stable policy frameworks enabling long-term planning.
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