Federal Budget 2025: Impacts on Migration and Policy
- sydney779
- Mar 26
- 4 min read
The 2025–26 Federal Budget presents a cautious recalibration of government policy in the migration and multicultural policy landscape. While the budget does not outline the Permanent Migration Program planning levels for the first time, it offers insights into Australia's evolving approach to public policy regarding net overseas migration, social services, and cultural diversity policy in the context of government programs.
Permanent Multiculturalism Migration Program: A Strategic Pause
The absence of an announcement regarding the 2025–26 Permanent Migration Program suggests a deliberate delay, likely influenced by economic pressures, labour shortages, and ongoing debates about infrastructure and social cohesion. Historically, migration planning has been a key government policy tool for workforce development and population growth. However, the election of the Howard Government marked a shift in public policy, and this year's omission may indicate a reassessment of Australia's multicultural policy statement. The New National Multicultural Advisory Council and the Australian Institute of Multicultural Affairs are expected to play key roles in shaping future migration policies.
Net Overseas Migration: Post-Pandemic Adjustments
Net overseas migration (NOM) is continuing its decline from the 2022–23 peak, with forecasts from the Australian Bureau of Statistics predicting stabilization at 225,000 by 2027–28. The current decline results from fewer arrivals and increased departures, including people of Australia who migrated during the post-pandemic surge. This shift underscores the need for a renewed multicultural policy and strategic integration plans at all levels of government. The Equity Inquiry Panel has been tasked with reviewing the impact of migration on employment and infrastructure.
Investment in Social Services and Multicultural Policy Australia Integration
A key highlight of the Budget is the continued investment in social services for members of the Australian community from culturally diverse backgrounds. The Government has allocated $44.5 million over five years (from 2024–25) under the Critical Support for Multicultural Communities Grant Program. This funding aligns with the recommendations of the Galbally Report and reflects bipartisan political support for strengthening multiculturalism and eliminating all forms of racial discrimination.
Federal Budget 2025 Key allocations include:
$3.5 million over three years (from 2026–27) and $1.2 million annually ongoing to embed the Community Refugee Integration and Settlement program, aligning with the work of the Australian Ethnic Affairs Council and the Australian Multicultural Advisory Council.
$7.7 million in 2025–26 for extending the Economic Pathways to Refugee Integration initiative, supporting employment opportunities for migrants and refugees.
Funding for multicultural events and community infrastructure, reinforcing the benefits of cultural diversity and enhancing social cohesion.
These allocations echo the early multicultural policies championed by Al Grassby under the Whitlam Government and reaffirm the principles of the Racial Discrimination Act. The establishment of a new Department of Social Services will oversee the implementation of these initiatives.
Migration and Legal System: Access to Justice
The Budget maintains stable funding for the Administrative Review Tribunal (ART) and Federal Courts, with a slight increase in 2025–26 to meet migration-related legal demand. The National Access to Justice Partnership remains a cornerstone in ensuring migrants and refugees have equal rights in navigating Australia's legal system.
Resettlement of Non-Citizens Without Legal Status
The Department of Home Affairs has allocated discreet funding for the resettlement of non-citizens released from immigration detention who have no lawful right to remain in Australia. This includes offshore processing arrangements in Nauru, continuing the vestiges of the White Australia Policy under contemporary border security measures. The then Department of Immigration previously handled similar initiatives before the restructuring of government agencies.
Support for Migrant Women Experiencing Violence
A significant component of the Women’s Budget Statement is the $925.2 million allocation to the Leaving Violence Program, beginning July 1, 2025. This initiative provides financial assistance of up to $5,000 to victim-survivors of domestic violence, regardless of visa status. This policy marks a substantial step in addressing the vulnerabilities of migrant women and aligns with Australia's broader human rights commitments.
Key Multicultural and Migration Policy Developments in Australia in Recent Months
February: The Equity Inquiry Panel submits recommendations on migrant workforce participation.
April: Prime Minister announces additional funding for refugee resettlement.
June: Leader of the Opposition critiques migration policy gaps.
September: The New Department of Social Services begins operations.
October: Public sector review highlights challenges in multicultural service delivery.
December: Queensland announces new initiatives for migrant integration in collaboration with India on cultural exchange programs.
Conclusion: A Budget Focused on Stability and Inclusion
While the 2025–26 Budget does not introduce sweeping reforms, it signals a commitment to multiculturalism, social services, and equality of opportunity. Key takeaways include:
A recalibration of migration levels following the COVID-19 surge.
Investments in refugee integration, reinforcing the role of the Australian Multicultural Council and the Office of Multicultural Affairs.
Strengthened legal infrastructure to support migrants and refugees.
A continued focus on border security and offshore resettlement.
A landmark initiative supporting migrant women facing domestic violence.
The evolving multicultural policy framework reflects Australia’s commitment to cultural diversity, echoing the advice of the Advisory Council and key policy shifts since the dismantling of the White Australia Policy. With ongoing public discourse and bipartisan political support, further government announcements in the coming months will shape the next chapter in Australia’s migration and multicultural strategy.
What are the key components of the Federal Budget for 2025?
The Federal Budget for 2025 includes allocations for healthcare, education, defense, infrastructure, and social programs. It focuses on economic growth, job creation, and reducing the national debt while addressing key issues such as climate change and income inequality.
Links References:
⚖ Migration Lawyer Ceren Guney
+61 448 412 210
📚 Registered Migration Agent Feriha Guney MARN 0960690
+61 477 524 039
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Disclaimer:
This information is for general understanding only and does not constitute legal advice. For specific advice tailored to your situation, consult a registered migration agent or legal professional.
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