As state and territory leaders prepare to discuss population policy in their first meeting with Prime Minister Scott Morrison, a business lobby group is urging them to recognise the benefits of migration and stop blaming migrants for infrastructure and transport shortfalls.
The Australian Chamber of Commerce and Industry has released a policy that highlights the boost migration gives to the businesses.
The statement recommends federal and state governments recognise the comparative advantage migration has given Australia when making new population policies.
It also argues Australia's migration program could be refined so it can become more responsive to skill and labour needs.
Those changes should include extending employer-nominated migration to all skilled occupations and ensuring visa fees and charges are internationally competitive, the chamber believes.
ACCI chief executive James Pearson said governments have become too caught up with the idea of constricting temporary skilled migration.
They have also been feeding perceptions that
His comments come before the Council of Australian Governments meeting in Adelaide on Wednesday.
"Employers across the country are deeply concerned this week's COAG meeting may suggest the states and territories cut back on migration because of infrastructure shortfalls," Mr Pearson said.
"That would be letting the tail wag the dog.
"Politicians would never tell people to stop growing their businesses and employing more people because of strains on infrastructure, so they should not do so for migration."
Mr Morrison has a "population framework" in mind but has asked each of the states and territories to come up with areas they want new migrants to go.
NSW Premier Gladys Berejiklian has been as Sydney struggles after years of under-investment in infrastructure.
But Victorian Premier Daniel Andrews says population policy needs to be met with proper infrastructure investment from Canberra.