A controversial plan to link immigration figures with the number of homes being built ignores the role skilled migrants could play in building these properties, experts warn.
A parliamentary inquiry is investigating the value of skilled migration to Australia.
On Tuesday, the committee was told if the federal opposition wanted more houses, skilled migrants could build them - especially if their existing overseas qualifications were recognised.
Around 620,000, or half of all permanent migrants are working below their qualification level in Australia, including around 18,400 with existing building and construction related qualifications.
On average each skilled trade person entering the workforce results in an additional 2.4 houses being built each year, according to the Master Builders Association.
"Migration is itself a solution to the housing crisis," Chief of Advocacy and Public Affairs at migrant services organisation, Settlement Services International, Dane Moores told the inquiry.
Mr Moores called for an overhaul of Australia's "fragmented, costly, and confusing" system for recognising overseas skills and qualifications, while welcoming funding in the recent budget which recognised the issue existed.
Also on Tuesday, South Australian senator Andrew McLachlan argued Mr Taylor's recent framing of migration issues risked alienating diaspora communities across the country.
But Senator McLachlan agreed there was a legitimate conversation to be had about migration levels, to ensure new arrivals get the support they need.
"It's about the tone and our approach, because we cannot - you should not - approach migration as a negative," he told ABC radio.
Strategic Advisor to SSI, Brad Chilcott told the parliamentary inquiry the debate should focus less on the number of migrants Australia is taking and more on using their skills once here.
"It's about how we're using our migration system for the benefit of all Australians," he said.
"So that we don't keep having this kind of ridiculous migration debate that's around tweaking the numbers 10,000 here and there."
In his budget reply speech, the opposition leader promised to set Australia's net overseas migration level at the number of homes completed in the previous year.
"This is about mass migration running ahead of the homes, roads, hospitals, schools and services Australia can provide," Mr Taylor told parliament.
Senator McLachlan said that language was unnecessary and politically risky.
"The use of the word mass migration, for example, is not acceptable ... it creates anxiety and fear in the community," he said.
Mr Taylor also promised to bar permanent residents from accessing welfare benefits like JobSeeker.
Asked about Mr McLachlan's comments, Mr Taylor denied his comments alienated migrant communities
"No, it alienates the government that's got it wrong," he said.
