Australian entrepreneur Dick Smith says the Federal Government's plans to boost the population in regional areas is unsustainable.

In a dramatic move away from Kevin Rudd's vision of a big Australia, Population Minister Tony Burke today released a new strategy setting no target for population growth at all.

Instead, his strategy emphasises growing regional Australia to take the pressure off the big cities.

But Mr Smith, who has long advocated for a population cap, says the strategy amounts to "moving deck chairs on the Titanic".

"We're not actually wealthier because we have more people," he said.

"We make our money from agriculture and digging bits and pieces out of the ground. You don't actually need too many people to do that."

Mr Smith says any move to create sustainable population growth is "impossible".

"If you want to have a sustainable Australia, I think Tim Flannery is correct - it's about 9 million people," he said.

"In other words, the people that can use the resources that are in effect replaced each year. At the moment we use something like 1.6 times the resources."

But Mr Burke, who released the report Sustainable Australia, Sustainable Communities report on the Gold Coast today, says the policy will not lead to a "free-for-all".

He says there are natural caps on growth such as the infrastructure and water-supply limits.

"But we certainly shouldn't ever be just hurtling towards arbitrary numbers or arbitrary targets," he said.

Regional push

The Government report emphasises the creation of jobs in the outer suburbs and regional areas to help reduce road congestion.

It refers to the Government's plan to increase regional sponsored migration by 60 per cent, as well as the fast-tracking of permanent residency to 457 visa holders who live in regional Australia for two years.

Regional Migration Agreements will also be introduced so that local authorities can recruit overseas workers for employers.

But Mr Burke acknowledges not everyone wants to move to regional Australia.

"I've got to say I live in a capital city and I would not want to move," he said.

"I have lived in the same part of the city all my life and love it. But a large number... of the people I grew up with have [moved]."

Opposition Leader Tony Abbott says the policy announcement is "much ado about nothing" - a tactic to take the focus off this week's budget.

His population spokesman, Scott Morrison, says the strategy is all spin and no substance.

"Ten per cent of the document is literally glossy full-page photos," he said.

"It doesn't really talk about migration and population levels and what they might be and what the rate of growth might be.

"It holds out unrealistic promises that all of this can be turned around by everybody moving to regional areas. We simply know, through centuries of migration experience, that that simply isn't how it happens."

The Coalition says population target bands should have been set; the Australian Industry Group agrees, saying it would allow better infrastructure planning.

But Prime Minister Julia Gillard says setting a target for population growth is not important.

"My concern, as Prime Minister, is to make sure that we have a sustainable Australia where, community by community, we are doing the right thing to meet the people's needs," she said.

"I don't want the first port of call for migrants to our country to always be the growing suburbs of Sydney and Melbourne.

"We want people to go to our regions where there are job opportunities, particularly in the resources boom, and that's why we've created more places for immigrants to go to regional Australia."