Federal Budget 2026-27: Priorities and impacts for refugees and asylum seekers. By Dr Claire Higgins, UNSW

The Kaldor Centre has consistently given evidence that Australia’s offshore detention and processing system ‘is not a necessary, effective or sustainable measure’ for deterring boat arrivals. Despite this, spending in this area continues to grow.

Total funding for the offshore regime reached $13.35 billion between 2012 and 2025.  This year’s budget brings that figure to $14.35 billion.

While $581 million was initially allocated for 2025-2026, actual spending is now expected to exceed  $971 million – ‘an enormous increase’ of almost $400 million in a budget item that involves ‘supporting the implementation of regional processing and resettlement arrangements between Australia and partner countries’. Sector organisations have described this as a ‘massive cost blowout’.

For 2026-27, offshore processing is estimated to cost just over $605 million….

Federal Budget 2026-27: Priorities and impacts for refugees and asylum seekers. By Dr Claire Higgins, UNSW