Findings from the Liberal-aligned Centre for Independent Studies echoed reports historic migration is broadly viewed as a positive but the current intake is having a negative impact on Australian society.
But Australian-born citizens and first generation migrants each feel multiculturalism is being held back by the other side, according to report author Parnell Palme McGuinness.
"New Australians have a strong sense of contribution to Australia, as well as an anxiety that they are not fully embraced," Ms McGuinness said.
First-generation migrants reported the main reason people come to Australia was for better job opportunities or for cultural and environmental factors.
Near the bottom of the list of motives were escaping conflict and welfare access, two reasons ranked highly by Australian-born citizens.
The report comes as the government, coalition and One Nation each announced policies to slash migration and rethink the role of international students and tradespeople in the economy.
Construction groups have used the debate to advocate for changes to skilled migration settings to better connect skilled migration to address chronic workforce shortages.
Tom Hartley, the owner of a local glass business in Adelaide, said he had seen a shortage of glaziers emerge in the past 20 years, forcing him to wind back services.
"Our applicants (are) almost down to zero," Mr Hartley told AAP.
"Our last Seek ad locally, I think we had two applications, and they were people that had trade experience but were not qualified."
The dearth of suitable candidates has forced Mr Hartley and hundreds of other trade reliant companies to look overseas with the support of a state-based industry program.
Master Builders South Australia has sourced fully qualified tradespeople from overseas to link directly to employers through its Build Connect program.
Program lead Melinda Maher said when politicians talk about skilled migration in construction, it must require a trade qualification.
"A Certificate III in a shed in the Philippines ...that's not skilled migration. That is semi-skilled," Ms Maher told AAP.
Delays in processing visas, however, remain a sticking point despite a recent ministerial direction which brings targeted applications, relating to sectors such as construction, to the top of pile.Â
"Employers are screaming for these people. They've been interviewed, screened, they've been job offered, and they're still waiting on visas at the Home Affairs level," Ms Maher said.
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