Treasurer Jim Chalmers warned that deeper migration cuts sought by the Coalition and One Nation would severely damage Australia’s economy and intensify pressures between generations. Speaking to POLITICO after the Intergenerational Report was released on Monday, Chalmers said policies presented as political slogans would worsen skills shortages in areas including construction and the care economy. Australia’s net overseas migration has already declined by almost 50% from the highs recorded after Covid-19. The Albanese government is pursuing additional reductions through migration caps, lotteries for backpacker visas and "no further stay" conditions on temporary visitors’ visas. Labor acknowledges the political pressure created by migration’s effect on housing demand amid constrained supply, while maintaining that migration is necessary to expand Australia’s working-age population.