Migrant drain on economy a myth

The ‘myth’ that mig­rants weaken the economy has been busted by data showing their median income is higher than other taxpayers.

A ‘myth’ that migrants are a drain on the economy has been busted. Picture: istock

The “pervasive myth” that mig­rants are a drain on the economy has been busted by new Australian Bureau of Statistics data showing migrant employees’ median income is no different than for other taxpayers.

The ABS data, which reveals the nation’s 1.9 million migrant taxpayers generated more than $112bn in total personal income in 2016-17, prompted Migration Council Australia to call for a fresh look at increasing Australia’s permanent migration program, after the annual intake was reduced from 190,000 to 160,000 during the term of the last Coalition government.

The median employee income of all migrant taxpayers in 2016-17 was $49,438, the data reveals, slightly higher than the median employee income for all Australian taxpayers at $49,412.

“The income and tax revenue generated by migrants is critical to our economic growth and to maintain the government’s budget bottom line,” said Carla Wilshire, CEO of Migration Council Australia.

“We need to recognise the power of the migration program to foster growth, fuel investment, build trade linkages and develop new industries. Migration has ­always been a key economic lever and as global economic conditions weaken, we need to consider increasing Australia’s permanent migration program as a stabiliser.”

Federation of Ethnic Communities Councils of Australia chair Mary Patetsos said the ABS figures “confirm just how strong a contribution migrants make to the Australian economy”. “The figures also dispel the pervasive myth that migrants are a drain on the economy and government services,” Ms Patetsos said.

“The median income for ­migrants is slightly higher than it is for all Australians, which means the tax paid by migrants to help fund our hospitals, schools and other services is also likely to be about the same or slightly higher than the median for all Australians.”

The ABS data examined the tax records of 3.4 million permanent migrants who arrived from 2001 across three financial years. It doesn’t include those not in work, or migrants on temporary visas such as students and “temporary work (skilled) visas”.

The data shows that more than half of migrant taxpayers (61 per cent) held a skilled visa, generating $81bn, or 72 per cent of the total income earned by all permanent migrants. The other categories are family visa holders (28 per cent), provisional visas (5.7 per cent) and humanitarian visas (5.1 per cent).

Humanitarian visa holders had a median income of $32,792.

Ms Patetsos said migrants on humanitarian visas needed greater support as they transitioned to the workforce as their skills might not be recognised.

The ABS data shows nearly one in five migrant taxpayers came from the UK (19 per cent), who generated $21bn in income in 2016-17. India followed with 16 per cent ($18bn), China at 8 per cent ($9bn), South Africa at 5.7 per cent ($6.4bn) and The Philippines at 5.1 per cent ($5.7bn).

Systems analysts, programmers, nurses, midwives, accountants and engineers were the most common occupations.