Australia's population grew by another 1.6 per cent to 24.7 million in the 12 months to the end of September 2017, adding another person every 1 minute and 26 seconds.

Key points: Australia's population grew by 1.6pc to 24.7 million in the 12 months to the end of September

Australia's population grew by 1.6pc to 24.7 million in the 12 months to the end of September Victoria experienced the highest growth rate of 2.4pc, with the NT the lowest with a net gain of only 100 people over the 12 months

Victoria experienced the highest growth rate of 2.4pc, with the NT the lowest with a net gain of only 100 people over the 12 months NSW continues to lose residents to Queensland, Victoria and to an extent Tasmania

At that rate, the population should have broken through 25 million sometime before Christmas last year.

Victoria continues to fuel Australia's population increase, growing at 2.4 per cent over the year, while New South Wales — the most populous state — grew in line with the national average.

Queensland grew marginally above the national average and should break through 5 million residents by the time fourth-quarter numbers are published.

Nationally, net overseas migration added 250,100 people to the population and accounted for 63 per cent of Australia's total population growth, the Australian Bureau of Statistics said.

"Natural increase contributed 145,500 additional people to Australia's population, made up of 306,500 births and 161,000 deaths."

Population growth summary

State/Territory Population September quarter 2017 Change on previous year Percentage change (year-on-year) NSW 7,895,800 +123,100 +1.6 Vic 6,358,900 +147,400 +2.4 Qld 4,948,700 +81,300 +1.7 SA 1,726,900 +10,800 +0.6 WA 2,587,100 +22,000 +0.9 Tas 522,000 +3,700 +0.7 NT 246,100 +100 - ACT 412,600 +7,200 +1.8 Australia 24,702,900 395,600 +1.6

Source: ABS

The total number of migrants to Australia grew at the fastest rate in eight years, but is still below the peak intake of 316,000 in the 12 months to December 2008.

CBA's Belinda Allen said the ratio of net overseas migration to population growth has shifted higher in recent years.

"The migrant intake is generally skewed towards skilled migrants rather than unskilled migrants," Ms Allen said.

Student visa applications were the key driver in migration growth, up more than 14 per cent in the six months to the end of 2017, with applications from China, India, Brazil and Nepal all rising strongly.

Overseas migration now accounts for more than 60 per cent of population growth. ( Supplied: ABS )

NSW residents flee over the border

In the tussle between the states for "Net Interstate Migration" bragging rights, New South Wales continues to see its residents fleeing north over the Tweed River and south over the Murray River.

Queensland has taken the honours with the highest net gain of 19,300 people over the 12 months to the end of September, with Victoria not far behind.

NSW was the biggest loser with 16,400 pulling up stumps and moving out.

The flow from New South Wales residents to Queensland and Victoria continued in the September quarter of 2017. ( Supplied: ABS )

Population growth keeping a lid on wages

Booming population growth, along with a higher participation rate in the workforce, is behind unemployment and underemployment not falling despite around 400,000 jobs being created over the past year.

This in turn continues to put downward pressure on wages with overcapacity in the job market limiting the ability of workers to negotiate pay rises.

AMP Capital's Shane Oliver said there are two sides to the story.

"In the short term at least, the high population growth and more people arriving will keep wages growth down," Dr Oliver said.

"Longer term, most studies I've seen show demand picking up and population growth being a positive for the economy."

The surge in population growth also flows through to that other hot topic of house prices.

"We were used to supplying houses at the rate of [a population growth] 200,000, not 400,000 [a year]," Dr Oliver said.