Australia’s population rose by 64,000 to 23.626 million in the final quarter of 2014, an increase of 330,200, or 1.42%, on a year ago, according to new figures from the ABS released this week. Natural increase and Net Overseas Migration contributed 44% and 56% respectively to the total population growth for the year ended 31 December 2014.

The statistics show that net migration into Western Australia has plunged by two-thirds in just the past two years, dropping from 56,300 in 2012 to 18,900 last year. Migration to Queensland has also dropped heavily, from 43,600 to 24,200. But migration to Victoria and NSW — where the economies ­remain firm — has continued at elev­ated levels, with the 69,900 ­migrants to NSW last year the highest in five years.

Australian National University demographer Peter McDonald told The Australian that, ideally, a migration program responds to swings in labour demand. “These numbers suggest it is doing just that.’

The ABS job vacancies survey, which is considered the most ­reliable measure of labour ­demand, shows continued strengthening from the weakness over much of 2013-14.

The number of job vacancies across the country is up 6.6 per cent from a year ago, with most of that growth in Victoria and NSW, while the number of vacancies in Western Australia has dropped

A new contender has emerged for Australia’s largest city so Sydney has to look out. According to the statistics from the ABS, Melbourne looks set to take the title as Australia's largest city, if the trends in interstate migration continue over the next few decades.

Record interstate migration to Victoria means Melbourne's population is expected to surpass Sydney's by 2056, the Australian Bureau of Statistics says.

Interstate migration has reached a 40 year high in Victoria, reflecting an ongoing upward trend in Victoria's population, according to Denise Carlton from the ABS.

"Victoria has experienced increasing population growth since 2011, with a net gain of 9300 people from the rest of Australia in the last year alone," she said.

Over a quarter of the people came from New South Wales, while South Australia, Western Australia and Queensland are the next largest contributors, figures reveal.

Victoria passed Western Australia to become the fastest growing state last year with the total population growing by 1.8 per cent.

Tasmania recorded the country's lowest population growth at 0.3 per cent.

Figures also reveal just more than 299,000 babies were born last year, which was 1.8 per cent fewer than 2013, while 153,600 people died, which was 4.7 per cent higher than 2013.

Overseas migration of 184,000 people accounted for more than half of Australia's total population growth, though the figure was 15 per cent lower in 2014 than 2013