Population and migration policy will be top of the agenda when Prime Minister Scott Morrison meets with state leaders in Adelaide on Wednesday.
State and territory leaders will sit down with Mr Morrison as part of the Council of Australian Governments (COAG) meeting, Australia's peak intergovernmental forum.
Mr Morrison has been flagging an overhaul of population policy since he took over as prime minister, appointing Alan Tudge as a new population minister.
He wants to move to a system where states and territories would set annual migration caps and be expected to demonstrate they have adequate infrastructure plans.
Mr Morrison has previously said the federal government would “always” set the overall cap on permanent immigration – set around 190,000 – but the states should play a more active role.
The shift comes in response to concerns over congestion in Sydney and Melbourne, while smaller states have been requesting more skilled migration to boost jobs.
Ahead of the meeting the Australian Chamber of Commerce and Industry, a leading business group, released a statement defending the economic contribution of migrants and urging governments not to use them as a scapegoat for poor infrastructure planning.

NSW Premier Gladys Berejiklian said she would consider implementing pill testing if her government was shown evidence it saved lives. Source: AAP