Deputy Prime Minister Barnaby Joyce says "Sydney is full" as he calls for migrants to be encouraged to move to the regions.
Regional migration is a vexed issue because while there is a lack of services, towns need workers to keep the economy going, Mr Joyce said on Tuesday.
"We also need people to do the work - working in the abattoirs or fruit picking or doing the jobs Australians just won't do," he told Sydney radio station 2GB.
"We've got to make sure people go to regional areas. We have to say 'if you want to come to Australia you have to live in Tamworth, you're not going to go live in Turramurra'."
To become "as strong as possible as quickly as possible", Australia needed to increase its exports like beef, coal and iron ore, the Nationals leader added.
"We have to go to regional areas and make sure that place is just absolutely humming with exports.
"We need to be able to supply all the labour required to do that because that's how we earn the money that pays for the nuclear submarines, for your health, for your education."