Labor has supported cuts to immigration levels despite being warned by Treasury that Australia faced the onset of acute skills shortages, according to a newspaper report.
Sustainable Population Minister Tony Burke and Treasurer Wayne Swan were told of the imminent shortages in a confidential briefing in April, The Australian reported on Tuesday.
But two months later Labor changed its "big Australia" policy under Kevin Rudd to the low-growth sustainable population policy adopted by Julia Gillard.
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The revelations are contained in a set of documents obtained by the newspaper under Freedom of Information laws.
The April 30 Treasury briefing to Mr Burke, which was copied to Mr Swan, said: "Over the next one to two years, the Australian economy is again expected to face capacity constraints.
"These constraints are expected to emerge earlier, and to be more acute, in certain regions and industries."
Treasury also said in a confidential briefing to Mr Swan that the abandoned resources super profits tax was needed to "cushion" the non-resource states from severe side-effects from cutting the company tax, The Australian reported.
