Australia should drastically reduce immigration levels until migrants are better integrated into society and to prevent further pressure on wages and housing prices, former prime minister Tony Abbott says.

Mr Abbott wants to see a cut in immigration numbers from 190,000 to 110,000 people a year, urging Prime Minister Malcolm Turnbull to take the issue to the electorate at the next election.

In a speech to the Sydney Institute on Tuesday evening, Mr Abbott is expected to tell his audience cutting the number of migrants will help wages growth and make house prices more affordable, News Corp Australia reports.

In a speech to the Sydney Institute on Tuesday evening, former prime minister Tony Abbott is expected to push for a cut in immigration numbers from 190,000 to 110,000 people a year (stock image)

The former prime minister (pictured) reportedly believes the cut will will help wages growth and make house prices more affordable

'My main concern tonight is another topic, no less taboo, lest anyone be upset or comfort be given to the racists supposedly in our midst, namely the rate of immigration,' he will say.

'It's a basic law of economics that increasing the supply of labour depresses wages; and that increasing demand for housing boosts price.

'At least until infrastructure housing stock and integration has better caught up, we simply have to move the overall numbers substantially down. In order to win the next election, the government needs policy positions which are principled, practical and popular.'

Asked whether Australia needs to change its immigration policy, Cabinet minister Mathias Cormann said the intake is lower now than its peak under the previous Labor government.

'The most important thing with our immigration intake is that we attract the right people to make Australia their home,' he told reporters in Canberra.

'In the end attracting appropriately skilled migrants with the right attitude also helps ensure our economic growth into the future.'