MEDIA RELEASE: Offshore detention costs blow out by nearly $400 million as refugees are biggest losers in Federal Budget

Media Release, Tuesday 12 May 2026

The Albanese Government has allowed spending on offshore detention to blow out by almost $400 million, with the total cost approaching a staggering $1 billion this financial year, while once again failing to deliver meaningful support for refugees and people seeking asylum.

Despite the enormous increase in spending on offshore detention, the Federal Budget provides no transparency around the Government’s secretive Nauru arrangements and only a small increase to the inadequate Status Resolution Support Services (SRSS) payment, the only meagre safety net available to many people seeking asylum. The additional funding allocated reverses only 2% of the enormous cuts to this program made under Peter Dutton, and at just $44 per day, the payment rate remains well below Centrelink rates and far below the poverty line.

The ASRC welcomes measures aimed at improving recognition of migrant skills, including the establishment of a Skills Migration Commissioner and an $85.2 million investment in faster and more flexible skills assessments. However, these reforms only go some way towards addressing the enormous missed opportunity within Australia’s migration system, given there are still nearly 13,000 people seeking asylum living in the community who the Albanese Government does not allow to work.

The budget also fails to confirm the humanitarian intake number for the coming year, creating further uncertainty at a time when global displacement has reached record levels.
The Government’s decision to prioritise onshore visa applications within the migration program reflects one reality it has correctly identified – there are many migrants already living in Australia who have been trapped in endless limbo for years and urgently need certainty about their future. Thousands of people remain stuck on temporary visas for years on end, unable to properly plan their lives despite already being part of the Australian community.

However, the decision to prioritise onshore visa applications in the family stream risks pushing family members trying to escape war and conflict even further down the queue, including relatives of Australians from refugee backgrounds desperately trying to reunite with loved ones. Certainty for some families cannot come at the expense of the unity and safety of others.

Jana Favero, Deputy CEO of the Asylum Seeker Resource Centre said:

“The Government is allowing spending on offshore detention to spiral towards a billion dollars this year, while thousands of people seeking asylum are left destitute in the Australian community, and the tiny number who do get support are forced to survive on just $44 a day. These are political choices, and they reveal a Government that is still willing to spend enormous amounts on punishment and secrecy while denying some of the most marginalised people in our community basic dignity and security.”

“We welcome investment in recognising migrant skills and reducing barriers to employment, but it makes no sense to talk about unlocking migrant potential while nearly 13,000 people seeking asylum living in the community are still banned from working. These are people who want to contribute, support themselves and build their lives.”

“The Government is right to recognise that there are thousands of migrants already living in Australia who have spent years trapped in uncertainty and need pathways out of limbo. But certainty for some families cannot come at the expense of other families trying to get loved ones out of war zones and conflict.”

For media enquiries or interviews, contact:
Natasha Blucher on 0412 034 821 or media@asrc.org.au