Federal Budget: A Call to End Costly Offshore Detention

Every year, the Australian Federal Budget shows us what the government really values, especially when it comes to people fleeing war, persecution and violence. As we look toward the 2026-27 budget, the Asylum Seeker Resource Centre (ASRC) is urging the government to choose compassion, fiscal responsibility and respect for human dignity. Here is what we are watching for and why it matters to all Australians.

Offshore detention costs billions 

Offshore processing of people seeking asylum is one of the costliest policies in the budget. The government allocated $581 million for the 2025-26 financial year, with spending projected to reach $1.5 billion by 2029. That’s billions of taxpayer dollars spent keeping people Australia has obligations to in remote locations overseas, rather than investing in cheaper solutions at home.

Beyond the staggering cost, there are also serious concerns about how this money is being used. Reports suggest the government received warnings about corruption and suspicious financial activity involving senior officials in Nauru. Whistleblowers say millions were paid for services that were never delivered or were no longer needed, and some contracts went to companies linked to criminal networks. On top of that, a new agreement with Nauru, worth between $2.5 billion and $7 billion, would allow Australia to send people with cancelled visas to Nauru on 30-year visas, without access to fair legal review. 

Let people work and use their skills

The ability to work and study while waiting for a protection claim to be processed is a matter of both economic sense and human dignity. Right now, nearly 13,000 living in Australia on temporary bridging visas are barred from working. Allowing people seeking asylum to support themselves would ease pressure on charities and help them contribute to our communities and economy. 

We’re also pushing for action on the ‘Activate Australia’s Skills’ campaign. This practical plan would help migrant workers use their qualifications and experience by simplifying applications, cutting costs and connecting skilled newcomers with local employers.

We can do better at home

While billions are spent overseas, Australia’s domestic humanitarian program is falling short. The government promised to increase the annual humanitarian intake to 27,000 places per year, but the number has stayed at 20,000 since 2023. The ASRC is calling for 50,000 places annually, with additional 10,000 places through community sponsorship and complementary pathways. 

Family separation is another urgent issue. Many refugees can’t reunite with loved ones because of high application fees, long waiting times and narrow rules about who counts as family. We need to expand family reunion pathways and create emergency places to respond quickly when new humanitarian crises emerge around the world.

Finally, basic support for people seeking asylum must improve. Today, only 7% qualify for the government’s Status Resolution Support Services program that offers a small allowance and case management. Strict eligibility rules leave most without help for housing, healthcare, mental health or English language support. The budget should expand this safety net and start integrating support for people seeking asylum into mainstream services everyone can access.

The budget reflects our values

The Federal Budget isn’t just about numbers. It is a reflection of our values as a nation and a clear signal of who we choose to protect, how we respond to global displacement and what kind of society we want to build. As the 2026-27 budget approaches, we’ll keep advocating for fair, compassionate policies and hold the government accountable to both the people they serve and the commitments they have made