Opposition leader Angus Taylor has claimed that migrants are a 'net drain' on Australia, but the numbers tell a different story. Migrants are generally younger, more skilled, and more educated than the average Australian, and they typically pay more in taxes than they receive in government benefits over their lifetimes.
The Facts Behind Migration
Far from relying on welfare, most migrants arrive in Australia eager to work and build a life. The migration system, while not perfect, prioritizes visas for those likely to contribute positively. A Treasury paper from late 2021 modeled the lifetime fiscal impact of the permanent migration program, finding that the average migrant pays $41,000 more in tax than they receive in services.
Breaking Down the Numbers
The analysis shows that skilled visa holders contribute a net $198,000, while family visa holders consume $126,000 more in services than they pay in taxes, and humanitarian visa holders $400,000 more. In contrast, the average Australian citizen consumes $85,000 more in services than they pay in taxes. This means the average migrant has a $127,000 more positive fiscal impact than the average citizen.
Alan Gamlen, director of the ANU's migration hub, called Taylor's claims 'slightly nasty opportunism,' noting that migrants as a whole contribute more in taxes than they receive in benefits. He warned against cutting social security nets for migrants, which could harm social cohesion and productivity.
Taylor's recent comments on Sky News suggested that cutting payments to non-citizens could save money, but there is no evidence of widespread welfare abuse among migrants. The Treasury paper concludes that the permanent migration program generates significant fiscal benefits for Australia.
