Australia's population grew by 1.6 per cent during 2018 reaching 25.2 million people.
The figures released yesterday by the Australian Bureau of Statistics show that the nation's total population growth has soared past 400,000 in a year.
Net migration from overseas accounted for about 250,000 of the 404,780 additional residents while the excess of births over deaths added 156,000 to the population.
The latest figures have reignited debate over whether the country can cope with an ever increasing population.
Entrepreneur Dick Smith has long argued that Australia must slow population growth.
''1.6% is a disaster," Mr Smith told the ABC on Friday.
"It will put us in the top three developed countries in the world for population growth and if this keeps up it will take us to 100 million people in Australia by the end of this century."
Bob Birrell from the Australian Population Research Institute said opinions on the level of migration varied depending on vested interests.
''Our level of overseas migration is very very high by international standards,'' Mr Birrell said.
''If you're worried about the destruction of Sydney and Melbourne then it's too high.
"If you're keen to see more consumers come to Australia, which is the big end of town's point of view, then you're very happy to see these numbers come in.''
According to Sustainable Population Australia (SPA), Australia's rate of population growth is "completely unsustainable in environmental, economic and social terms".
SPA national president, Sandra Kanck, says 61.4 per cent of total growth (404,780) was from net overseas migration (248,400 people).
"This is nearly a quarter of a million people added to our population every year from immigration," Ms Kanck said.
''It is far more than the country can absorb and can only add to housing unaffordability, increased waiting times, urban congestion, greenhouse gas emissions, and encroachment on other species' habitats."
Last year, 314,000 babies were born in Australia and 158,000 people died and the fertility rate sits at an average of 1.8 births per woman.
"These figures give the lie to those who argue that our population would decline without immigration," Ms Kanck said.
"While the federal government is trying to keep a lid on permanent migration, temporary migration appears to be out of control.
''Whether permanent or temporary, all migrants require housing, energy, water, transport, jobs, health care and often education. And we are falling behind with the provision of most of these.
"How many times must we say that Australia is a largely arid country that can only sustain a small population?"
During 2018, the fastest rate of population growth was in Victoria (+2.2%), followed by the ACT (+1.8%) and Queensland (+1.8%). More modest growth was recorded in NSW (+1.6%) and Tasmania (+1.2%).
Master Builders Australia estimates that between 193,850 and 201,705 new homes will need to be built each year over the coming two decades to accommodate future growth.
Shane Garrett, chief economist of Master Builders, said the population growth figures showed the need for state and territory governments to work with the Federal Government to fast track congestion busting infrastructure projects and support an increase in new housing construction.
"There is a very strong linkage between inward migration to Australia and the pace of job creation. The 270,000 increase in total employment during 2018 is very similar to the figure for overseas migration," Mr Garrett said.
"Population and jobs growth drives construction activity right across the spectrum including for residential, offices, shops, schools and hospitals - not to mention all of the support infrastructure needed.
"Australia's building sector is currently facing challenges in the form of weakening economic growth and difficulties around access to finance in some parts of the market. Fast tracking the rollout of previously announced government infrastructure projects would help strengthen confidence on the ground in addition to meeting the needs of a growing population.''
Urban Taskforce CEO Chris Johnson said NSW lagged behind Victoria and Queensland on population growth percentages.
'' Victoria grew at 2.2 per cent in 2018 with a growth of 139,400 people, Queensland was second with 1.8 per cent which equalled 89,900 people and NSW was third at 1.6 per cent equalling 123,800 people,'' Mr Johnson said.
"It would appear that the less supportive attitude to growth particularly in Greater Sydney is encouraging people to go to the neighbouring states of Queensland and Victoria.''
The Federal Government has previously announced that the permanent migration intake will be cut from 190,000 per year to 160,000.
