Opposition leader Angus Taylor has claimed that migrants are a 'net drain' on Australia, but the numbers tell a different story. According to Treasury modelling, the average migrant pays $41,000 more in tax than they receive in government services over their lifetime.
Migrants: Younger, Skilled, and Productive
Migrants are generally younger than the average Australian, typically aged 25-30, and are more skilled and educated. This is by design, as Australia's migration system prioritises visas for those likely to make a positive contribution. Far from being welfare-dependent, most migrants arrive motivated to work and build a life.
Treasury Analysis Shows Fiscal Benefits
A Treasury paper from late 2021 modelled the lifetime fiscal impact of the permanent migration program. It found that skilled visa holders contribute a net $198,000 in tax, while family and humanitarian visa holders have a negative net impact. However, overall, the average migrant provides a net benefit of $41,000, compared to the average Australian citizen, who consumes $85,000 more in services than they pay in taxes.
This means the fiscal impact of the average migrant is $127,000 more positive than that of the average citizen. The paper concluded that 'the permanent migration program generates significant fiscal benefits, in aggregate, to Australia.'
Political Opportunism or Fact-Based Policy?
Alan Gamlen, director of the ANU's migration hub, described the Coalition's promises to restrict entitlements as a solution to a non-existent problem. 'It's just a kind of slightly nasty opportunism,' he said. 'If we care about social cohesion and productivity, taking away social security nets is not a great thing to do.'
Taylor's claims have been criticised as a politically motivated attempt to paint migrants as a drain on the economy, despite clear evidence to the contrary.
