Speaking at an event in Sydney to mark half a century of flagship daily The Australian, Mr Murdoch said he remains optimistic about Australia's future and called on the country's leaders not to squander their advantages.
The 83-year-old said Australia has a "comparative advantage in a world where not all are free," and as such it should welcome those who share the values of the country.
"We should be a beacon, but that means holding ourselves to high standards and not simply finding fault with others," he said.
“We must be open to immigrants, to their desire to improve themselves and to the resulting improvement in our country.”
On the back of those comments, The Australian has published a Newspoll today that suggests around a fifth of Australians favour higher migration levels.
About half of the people responding to the survey indicated support for Australia's existing intake levels, which resulted in 190,000 new immigrants last year.
While around 22 per cent say they would support an even higher intake, and 27 per cent want immigration levels cut.
Despite a blown out parliamentary sitting week, Prime Minister Tony Abbott attended the gala event along with 400 of the country's most influential people.
Mr Abbott, formerly a journalist on The Australian, led the tributes to the News Corporation executive chairman and the paper he created.
"The Australian sought to offer a new, national perspective for Australia. We stood for a confident, more global perspective. We sought to define both our country and its role in the world," he said.
Mr Abbott also sought to debunk criticisms that The Australian acts as a cipher for the political leanings of Rupert Murdoch.
"The Australian has borne his ideals but not his fingerprints; it has been his gift to our nation. Of course, it's had its critics, often in its own pages. To its credit, when The Australian is campaigning, it makes no bones about it and while its preferences are clear, its mind is almost never closed," he said.
In his speech, Indigenous leader Noel Pearson said The Australianhad played an historic role highlighting Aboriginal rights issues.
Mr Pearson said the newspaper was the first to offer "serious national reportage and commentary on the original Australians."
Opposition leader Bill Shorten described 50 years of publication as a "remarkable achievement," adding that the paper continues to play an important role in national debate.
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