An independent think tank for regional economies wants to see more overseas migrants settling in regional and rural communities to fill the thousands of vacant jobs.
In a submission to the government's migration review, the Regional Australia Institute (RAI) has called for a national population plan to encourage more overseas arrivals to consider a regional lifestyle.
Such a plan would consider the infrastructure needed to accommodate bigger populations in the regions, with severe housing shortages one reason people aren't moving regionally.
RAI chief executive Liz Ritchie said migration would be critical to the growth and sustainability of the regions in over the next decade, but less than 17pc of overseas migrants would settle in regional Australia during this financial year
"Regional Australia deserves a far greater share of Australia's biggest driver of population growth," Ms Ritchie said.
"Migrants can bring the skills and labour that regional Australia desperately needs. Our regional cities and towns are crying out for skills and labour, reaching a record of over 96,000 job vacancies in late 2022."
RAI found the most recent Census data shows overseas-born migrants were not opposed to living outside of metropolitan areas if they had the information and support to do so.
Census data also shows that migrants are helping to buffer the population decline in some regional communities. Between 2016 and 2021, 103 regional LGAs had their Australian population decline while their overseas population rose.
"Demand to live in regional Australia is not the issue," Ms Ritchie said.
"We need to take a holistic view of the various factors impacting Australia's migrant population. Population planning, jobs, access to housing are all interlinked."
The submission also urged the government to set a regional population target of 11 million by 2032, and to do more to advertise job opportunities in the regions.
Home Affairs Minister Clare O'Neil announced the review of the system last year, with migration considered a key piece of the puzzle when it came to easing Australia's acute workforce shortages.
*With Australian Associated Press