WA leads the way as national population grows 1.6pc

Western Australia was the biggest mover, growing 2.2 per cent to 2.6 million, while Tasmania made the smallest gain, growing 0.3 per cent to 515,000.

Victoria climbed 1.9 per cent to 5.8 million, NSW grew 1.5 per cent to 7.5 million, and Queensland also rose 1.5 per cent to 4.7 million.

The ACT's population increased by 1.2 per cent to 386,000, Northern Territory's by 1.0 per cent to 245,000 and South Australia's by 0.9 per cent to 1.7 million.

Net overseas migration provided 58 per cent of Australia's population growth, while natural increase generated the other 42 per cent.

Housing Industry Association economist Geordan Murray said Australia's annual growth fell from 1.8 per cent in 2012/2013 but was still well above the long-term average.

"Compared with many other developed economies, Australia has been a star performer over the last few years," he said.

"With shortages of skilled labour evident in many industries and a relatively strong-looking economy, Australia has proved to be a very attractive destination for overseas migrants and was equally attractive for Australians who would have otherwise considered opportunities overseas.

"With developed economies having found their feet and Australia's resource sector investment boom receding amidst a rising unemployment rate, the attraction is not as strong as it once was."

Australia ranks 51st in the world for population. It is forecast to reach 38 million people in 2050, which is expected to place it 55th in the world.

[Related: Record interstate migration to Victoria]