Interstate arrivals in Victoria were most likely to have come from NSW, Queensland and Western Australia. Those states were also the most popular destination for departing Victorians.

Overseas migration brought in a net 23,657 new residents. Victoria is Australia's second biggest destination for migrants after Sydney, taking in just over one quarter of all new arrivals.

"It wasn't long ago that Victorians was losing population to other states in the same way as NSW," said University of Queensland demographer Martin Bell. "But things are evening up. The differentials between jobs and house prices are narrowing. Internal migration to Queensland is a fraction of what it was."

The figures show Melbourne's population growing at an annual rate of 2.25 per cent, Ballarat's population growing 1.83 per cent, Bendigo's population growing 1.72 per cent and Shepparton's population growing 0.93 per cent. Australia's population is growing at an annual rate of 1.5 per cent.

The bureau's projections have Melbourne doubling in population to reach 8.163 million by 2056, making it slightly bigger than Sydney. Perth would become Australia's third biggest city with 5.1 million, eclipsing Brisbane with 4.5 million. Adelaide would have 1.9 million, Canberra 700,000, Hobart 268,000 and Darwin 216,000.