Population defines infrastructure demand

Population dynamics such as growth, age and movement play a significant role in the demand for infrastructure services.

Australia's people are diverse and where they choose to live is changing. The population is getting older and settlements are densifying and urbanising, particularly in Fast-growing Cities.

However, while cities and several small towns are experiencing growth, the number of people living in some rural and remote areas is declining.

These shifts create decisions around how to align employment locations with the needs of a changing economy, increase network capacity and shape growth, without compromising service delivery, liveability and environmental health.

Ensuring infrastructure responds to constantly changing demographics is therefore a major challenge for its planners.

One example is the impact of the pandemic on net immigration figures. The Centre for Population estimates the national border closures will see a net reduction of 1.1 million overseas migrants into Australia between 2019-20 and 2028-29.30

It expects population growth to fall to 0.2% in 2020-2021 and to 0.4% in 2021-2022, the slowest growth in over a century.31 32

Another factor is movement. While most of Australia's population growth will continue to occur in cities, the population is rapidly increasing in some small towns.

For some communities, this is putting pressure on existing infrastructure. The challenge has been compounded by the COVID-19 pandemic, which sparked additional growth in many small towns as people left big cities to work remotely and enjoy a different lifestyle.

Relatively small population increases in small towns can have significant impacts on local economies and infrastructure. Infrastructure can be quickly overwhelmed if population growth outpaces its existing capacity.