Australia must embrace immigration, trade and foreign investment - or risk the prosperity of future generations, according to Treasurer Scott Morrison.

In his third and final post-election headland speech, to be delivered at the Lowy Institute in Sydney on Friday, Mr Morrison will argue Australia has built its wealth on the back of freer trade and that, for two centuries, it has relied on the influx of foreign capital to fund domestic investment and grow the overall size of the economy.

At the same time, the nation's targeted immigration program has been a prime driver of population growth and, therefore, economic growth, while the "composition of our immigration intake has been equally important. Our immigration program sets itself apart from other countries, as it is built on attracting people and families to Australia who want and are able to make a contribution, rather than take one".

Mr Morrison, like Labor treasury spokesman Chris Bowen and finance spokesman Jim Chalmers in recent speeches, identifies a rising tide of anti-Muslim and anti-immigration sentiment in some pockets of the Australian community.