The federal government has announced plans to reduce the annual migration intake in order to reduce congestion in major cities.

The proposed new cap brings the intake down to 160,000 people, 30,000 less than the current maximum amount.

The reduction would include 23,000 people to live and work in regional areas.

Minister for Immigration David Coleman tells Ross Greenwood migration workers will be a benefit to the economy.

“We want to take a breather in terms of the rapid growth rates we’re seeing, especially in Sydney and Melbourne.

“When skilled migrants come in they get jobs that are generally high paying jobs, which means they generate taxes.”

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