Australia took in 20,000 fewer permanent migrants than in the previous financial year, as 12,000 skilled visas weren't issued and the number of family visas dropped by 8,000.
Home Affairs Minister Peter Dutton says the cut is partly due to the government listening to "community concerns" but migrant and business groups say the reduction in the intake could have negative consequences.
While permanent migrant entrants are down, what's known as net overseas migration is at almost 226,000 people a year.
Net overseas migration includes people on temporary visas as well as Australians who go overseas or return to Australia after time abroad.
The Home Affairs department estimated that just under 512,000 people would have arrived in Australia by the end of the financial year, [[June 30, 2018]] while 286,000 people left Australia during that period.