Migration boom drove record $38.2 billion in remittances in 2024, report finds

Australia’s migration boom helped drive a record $38.2 billion in overseas remittances last year, including $7.3 billion to India and $5.35 billion to China.

Australia’s migration boom helped drive a record $38.2 billion in money sent in overseas remittances last year, including $7.3 billion to India and $5.35 billion to China, according to new analysis.

The two countries received nearly one third of all payments by migrants to their home countries in 2024, while Israelis in Australia sent the most per capita, the report by comparison site Money Transfer Australia found.

The findings drew on figures from the World Bank, the Australian Bureau of Statistics (ABS), the Global Knowledge Partnership on Migration and Development (KNOMAD) and the Department of Foreign Affairs and Trade (DFAT).

India received $7.3 billion in remittances from Australia last year. Picture: Money Transfer Australia

“It’s safe to say that the bigger our overseas-born population, the more Australian money is being sent overseas,” Money Transfer Australia editor-in-chief Russell Gous said in a statement.

“However, it’s not just the big economies, such as India and China, that are benefiting from our remittances. In some African and Pacific nations, these transfers are likely a financial lifeline for many. In Nepal, for instance, Australian residents sent more than 20 times the amount the Australian government gave in aid. Private remittances are about family love and loyalty, but they also stimulate economies in destination countries.”

Australia’s population surged by 445,900 people, or 1.7 per cent, in 2024 to 27.4 million, largely from immigration.

Natural increase — births minus deaths — was 105,200 people, while net overseas migration — arrivals minus departures — was 340,800.

Just under 595,000 migrants arrived last calendar year, with 194,796 in NSW, 169,041 in Victoria, 106,058 in Queensland and 72,997 in Western Australia.

Anthony Albanese and Jacinta Allan attend a multicultural event. Picture: Valeriu Campan/NCA NewsWire

“With net overseas migration expected to reach more than 1.3 million people between the 2023 and 2025 financial years … we believe remittance outflows from Australia will be even higher in 2025,” Mr Gous said.

As of June 30, 2024, the proportion of people born overseas was 31.5 per cent, or 8.6 million, the highest figure since 1891.

England, India, China, New Zealand the Philippines were top five most common countries of birth, with those born in India recording the largest increase since 2014.

Between 2013 and 2023, Australia’s Indian-born population more than doubled from 378,480 to 845,800, overtaking Chinese-born residents — who went from 432,400 to 644,760 — to become the second-largest migrant community making up 3.2 per cent of the total population.

In the same 10-year period, the number of residents born in England fell from more than one million to 961,570, while those born in Italy — the only other country in the top 10 to decline — fell from 200,670 to 158,990 — reflecting the ageing of the post-World War II migration wave.

“Key reasons for the fall in European-born populations include moving away from a discriminatory immigration system and assisted migration programs in the 1970s and the European Union’s freedom of movement laws, which have made it relatively easier and cheaper for Europeans to access the labour market across Europe,” according to the ABS.

Australia’s population grew by 445,900 last calendar year. Picture: Nicholas Eagar/NCA NewsWire

In 2023-24, the top countries for migrant arrivals were India and China, driven by record numbers of international students on temporary visas.

Money Transfer Australia’s analysis noted that India tops the global remittance charts and is also Australia’s largest recipient. However Australia’s contribution makes up just 3.8 per cent of India’s overall inflows.

By contrast, China smaller dollar amount of $5.35 billion was a much larger share of its total remittance inflows at 12.1 per cent.

“Australia is the UK’s most popular emigration destination, receiving nearly $US1 billion [$1.52 billion] in remittances — about 20 per cent of the UK’s total inflows,” the report said. “However, UK migrants send significantly less per person compared to those from China or India, suggesting more of their earnings remain within Australia’s economy.”

Aman Sethi, founder and managing director of visa advisory and job search firm JICS Australia, said sending money home to help family was an important part of many migrants’ culture.

“People will leave their family, sometimes immediate, sometimes extended overseas and come to Australia to work, study, build a career and build a life,” he told news.com.au.

JICS Australia founder Aman Sethi. Picture: Supplied

“Then when they are adding that value and contributing to the Australia economy they obviously like to give some of that success [back], they’re working hard and sharing that with their families overseas. That’s why the numbers are significant.”

Mr Sethi said a lot of the newer migrants from India still had responsibilities to their families back home.

“It could be a brother supporting their younger sister or their elderly parents,” he said.

“With the currency conversion, even what we might consider a small amount of money here has a huge impact on the quality of life for the family members.”

He noted that in some cases the family member “has supported their journey”. “They might have taken out loans [to pay for them] to study in Australia,” he said. “It’s a significant cost for international students. It’s a two-way street, getting the support early in their lives [and then paying it back].”

Adam Creighton, chief economist at the conservative Institute of Public Affairs (IPA) think tank, argued “soaring remittances are a reminder that the economic benefits of immigration are lower than they might seem because of the lower propensity of immigrants to spend their incomes in Australia, as native-born Australians typically would”.

“It’s perfectly understandable that international students remit money home,” he said.

“However, this fact undercuts the economic arguments typically made about the benefits of a large and growing international student population, that being, they send billions of dollars out of the country every year, rather than spend it here. World Bank data shows remittances out of Australia have increased several-fold in recent years hand in hand with the explosion of students, especially from India and China, the top two destinations for remittance flows.”

Money Transfer Australia also found which migrant communities in Australia sent higher amounts abroad.

Israelis topped the list, sending a substantial $35,960 per migrant last year, “reflecting likely investments or wealth transfers, rather than traditional family remittances”.

France also stood out, with a migrant population roughly 3.5 times the size of Israel’s, yet still sending home an average of $24,505 per person.

“This contrasts sharply with average total money sent per person to Thailand (at $237) and Vietnam (at $344),” the report said. “Migrants from Papua New Guinea sent the least last year, at $82 per person.”

Pacific Nations rely heavily on Australian remittances. Vanuatu received 66 per cent of its total remittance inflows from Australia, while Tuvalu received 49 per cent, the Solomon Islands 45 per cent and Fiji 35 per cent, the report found.

Originally published as Migration boom drove record $38.2 billion in remittances in 2024, report finds