A record $38.2 billion was sent from Australia in overseas remittances last year, according to a new report.

This includes remittances of $7.3 billion sent to India and $5.35 billion to China – about a third of all payments by migrants to their home countries, according to the report by comparison site Money Transfer Australia.

The report found Israelis in Australia sent home the most money per capita.

The report used 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).

Money Transfer Australia editor-in-chief Russell Gous said it was not just large countries, such as India and China, who were benefiting from remittances.

“In some African and Pacific nations, these transfers are likely a vital financial lifeline for many people,” Mr Gous said.

“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,” he said.

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.

“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.

The latest data shows 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 the 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.

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

The report said India topped the global remittance charts and was also Australia’s largest recipient. However, Australia’s contribution makes up just 3.8 per cent of India’s overall inflows.

The $5.35 billion going to China was a much larger share of its total remittance inflows at 12.1 per cent.

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.

Read the full report: Australia’s Remittance Flows: Surprising Winners and Losers