Australia’s migration story is largely one of success. But new research reveals thousands of newly arrived migrants are left vulnerable during their first years of settlement.
New research by the ACOSS and UNSW Sydney led Poverty and Inequality Partnership found migrants in Australia have comparatively strong employment outcomes and low rates of poverty – but outcomes vary considerably depending on their pathway as a migrant, refugee or person seeking asylum.
The first 10 years: Employment, income and poverty among migrants and refugees in Australia , highlights concerningly high rates of poverty among people holding humanitarian, family and student visas.
The report points to the need for greater employment and financial support to support the wellbeing of new migrants, with skilled migrants experiencing the highest employment rates and lowest rates of poverty among the different visa categories.
Dr Yuvisthi Naidoo from UNSW’s Social Policy Research Centre says a significant driver of poverty among migrant families is the Newly Arrived Migrants Waiting Period , which bars new permanent residents from accessing most income support for up to four years.
“Many migrants cannot access income support during their first four years as permanent residents, even if they’ve worked and paid tax in Australia for years on temporary visas before becoming permanent residents,” says Dr Naidoo.
“Australia’s migration program is already a remarkable success story, but the evidence shows we could achieve even better outcomes by removing barriers that keep people in hardship during the first years after they arrive.
“Providing people with a basic safety net during their first years in Australia isn’t just compassionate – it helps families settle more quickly and supports children’s wellbeing.”
The numbers
People who are family migrants in the first four years of permanent residency had unemployment rates of 5.7% for men and 6.7% for women. This equates to more than 75,000 people potentially affected by income support waiting periods.
Women on family visas face particular barriers to employment participation with a third of women aged between 25 and 44 not in the labour force (33.2%), compared with the average of 20.8%.
Reflecting their experiences of trauma and dislocation, people entering Australia on humanitarian visas have lower employment and higher poverty rates in the first years after settlement.
Around 60% of people entering on humanitarian visas are living in poverty in their first year in Australia and two-thirds of refugee children are living in near poverty with less than $500 a week to live on.
Among temporary visa holders, skilled temporary visa holders had very low near-poverty rates (1.3%) and students had higher poverty (13.7%) and near-poverty (17.6%) rates.
ACOSS is calling for existing income support waiting periods to be reduced and for increased financial and employment support for refugees to reduce the risk of poverty.
The need for change
ACOSS CEO Dr Cassandra Goldie says the current policy settings force too many people to endure unimaginable hardships. She says some people migrating need more financial and employment support, especially in the early years.
“While refugees rightly have immediate access to income support, the data shows that they are experiencing very high levels of financial hardship,” Dr Goldie says.
“This is not surprising, given the inadequacy of income support payments and the barriers to employment they face. The research shows that with the right support on arrival, many refugees enter the labour market with strong growth in employment over the first 10 years.”
She says people come to Australia to build a life, and the community is strengthened by their contributions as neighbours, volunteers, family members, and community leaders.
“But the moment something goes wrong for skilled and family migrants, and they need support from the social security system, they are told they’re on their own due to the impact of waiting periods,” Dr Goldie says.
“Waiting four years for the most basic safety net pushes families into hardship when they are trying to establish themselves in Australia.
“ACOSS is calling for existing income support waiting periods to be reduced and for increased financial and employment support for refugees to reduce the risk of poverty.”
UNSW Vice-Chancellor and President Professor Attila Brungs says Australia’s success has always been built on the contributions of migrants and refugees.
“But this report reminds us that opportunity is not experienced equally,” Prof. Brungs says.
“Too many people still face unnecessary barriers that leave them vulnerable to poverty during the critical early years of settlement,” he says.
“As a university committed to progress for all, UNSW is proud to support research that provides robust evidence to inform better policy and improve lives.”
UNSW Vice-President, Societal Impact, Equity & Engagement, Professor Verity Firth AM says understanding where the gaps are can help build a more inclusive Australia.
“The findings in this report show that targeted investment in settlement support, workforce participation and social protection can make a profound difference, particularly for refugee families,” Prof. Firth says.
“Research partnerships like this help ensure that public debate is grounded in facts and that governments have the tools to design policies that strengthen both social inclusion and Australia’s long-term prosperity,” she says.
