Soaring numbers of student and temporary visa holders will drive overseas migration levels to near-record highs this year, raising doubts over the Morrison government's plan to ease urban congestion by slashing the permanent intake by 30,000 places.



More than 270,000 migrants will arrive in Australia in 2019, up from 259,000 last year. The figure is 40,000 more than was forecast in last year's budget, representing a 15 per cent blow out.

The Coalition in March released its long-awaited population plan, which pledged to reduce permanent migration in a bid to quell voter concerns about urban congestion ahead of the federal election.

Prime Minister Scott Morrison says he will tackle concerns about crowding and traffic congestion in Sydney and Melbourne. Credit:Peter Rae

While the government has attempted to lure more migrants to the regions and smaller states, Tuesday night's budget shows the bulk of new migrants are likely to go to Melbourne and Sydney. The Victorian population is forecast to grow by 7.3 per cent over the next three years, NSW by 5.4 per cent and Queensland by 5.1 per cent.