In Victoria state, Indians werethe second highest proportion ofresidentsborn overseasat 126,800 after Britishers at228,400 and ahead of Chinese at112,800.
Western Australia topped the list for having the highest proportion of migrants.
The latest datawas released by Australian Bureau of Statistics today.
In WAwith more than one third of WA's population now born overseas,British expats were highest in numbers living anywhere in Australia.
"The proportion of overseas born residents in Western Australia has continued to increase from one census to the next," Bjorn Jarvis, director of demography at the ABS said.
In June 2013, Australia's population included 6.4 million migrants (28 per cent of the population).
"Over the past decade, the number of people born overseas who are now living in Australia has increased by 1.7 million people," Jarvis said.
Across Australia, people born in the United Kingdom remained the largest group of migrants with more than 1.2 million settling Down Under.
Migrants from New Zealand in the country stood at 608,800, Chinese at 427,600 andfrom India at 369,700.
State breakdowns show Western Australia now has 33.4 per cent, or 786,500 people, who were not born in Australia.
They also recorded the largest increase in the proportion of overseas born residents, up from 29.9 per cent in 2006.
The Northern Territory had the highest proportion of people born in the Philippines with 1.9 per cent.