'New migrants could go bush'

Newly appointed population Minister Tony Burke says he may explore whether immigration rules can be used to dictate where migrants live, and work.

The comments come before a poll revealed more than two thirds of Australians were uncomfortable with a projected population surge of more than 50 per cent, by 2050.

Most were happy with a bigger population but did not want numbers to rise from 22 million to 36 million over the next four decades, as forecast by the treasury.

Mixed reaction on poll

"The poll shows Australians are comfortable with some increase in population size," said Michael Wesley, executive director of the Lowy Institute, which questioned 1,001 people last month.

"But (they) are not in full support of the 36 million projected in the government's inter-generational report."

Prime Minister Kevin Rudd, who is in favour of a "big Australia", this month appointed the country's first population minister to manage the expected rapid growth.

Population will 'test limits of sustainability'

The rise is the subject of fierce debate, with Treasury Secretary Ken Henry warning in October that the growing and ageing population would "test the limits of sustainability".

"Our record has been poor, and in my view, we are not well placed to deal effectively with the environmental challenges posed by a population of 35 million," Henry said.

Australia, the world's sixth-largest country by land mass, is the most sparsely populated developed nation with only 2.9 people per square kilometre (7.4 per square mile).

Parts of the country remain in the grip of a years-long drought and there are also concerns over housing supply and infrastructure such as roads and railways, experts say.

Newcomers should 'go bush'

However Mr Burke said it was "not in the national interest" for newcomers to settle in areas where they put upward pressure on infrastructure and jobs.

He said new migrants maybe better suited to regional communities, where they're crying out for workers and skilled employees.

"There is probably more that we can do than we've done in the past in the immigration program in saying, 'If you're coming to Australia there are parts of Australia where we need you to get your first job,' " he said.

ACCI hits out at population poll

Meanwhile the Australian Chamber of Commerce and Industry says the governments shouldn't be swayed by the poll.

Chamber chief Peter Anderson says Australians must realise population growth is inevitable.

"There's no commonsense to be applied by simply nominating a figure which Australia's population should be at by a particular date," he told reporters in Canberra on Thursday.

"What needs to happen is to take a medium to longer term view on population policy."

That meant putting in place the type of economic and social infrastructure needed to sustain a growing population.

Mr Anderson warned the opposition, which has flagged skilled migration cuts as part of its future policy that it should take care.

"In the wake of a recovering economy, and what we expect to be some global recovery during 2010/11, the likelihood is we will need to increase our skilled migration intake," he said.

"The opposition will need to factor that in."