Alan Tudge wants to emulate Canada's success in giving provinces a greater role in shifting new migrants beyond the country's biggest cities.

"While there is no requirement for new immigrants to stay in the province that has nominated them, the evidence is that the vast majority stay in that province," he told a Sydney summit on Monday.

Before the changes in the early 1990s, only 10 per cent of economic migrants settled outside Canada's major cities.

This figure has since risen to 34 per cent.

Mr Tudge puts the program's success down to offering migrants a strong welcome and support programs, a community network and help in finding work.

"Canada provides an interesting case study in how migration policy can achieve a better distribution of population growth," he said.

"This program is one example of a bottom-up approach to migration."

The Australian government is providing various incentives to skilled migrants, international students and working holiday-makers to encourage them into regional centres and smaller cities.

Mr Tudge is also looking at how European countries like Germany and France have used fast rail to connect big capital cities to regional centres.

He wants people to live in the regions and catch the train into big cities for work each day.

The federal government wants to connect most of the satellite cities of Melbourne, Sydney and Brisbane within 20 years.

In the meantime, the government has slashed the permanent migration rate from 190,000 to 160,000 to ease pressure on roads and rail.

The number will be capped at 160,000 for the next four years.

Mr Tudge is also calling on the states and territories to fast-track housing approvals and spend more on public services to better support population growth.

Australian Associated Press