Immigration Minister Peter Dutton said the government is looking at encouraging migrant workers to settle in regional cities and away from the property hot-spots of Sydney and Melbourne.
Treasurer Scott Morrison has made tackling housing affordability the centrepiece of the May 9 budget.
Mr Dutton said a lot of work has been done between his department, Treasury and Finance to have a look at the economic impact of people settling in Sydney or Melbourne in terms in terms of infrastructure and housing supply.
"There are ways we are looking at that we might be able to provide support to people to choose a regional city," Mr Dutton told Sky News on Sunday.
He said the migration intake should be driven by what's in the national interest and that the numbers fluctuate in tandem with the economy as demand for foreign labour will waxes and wanes.
