Migrants helping to drive the economy – ABS data
A new snapshot of migrant incomes in Australia shows that new arrivals are increasingly the drivers of economic activity and are filling key roles in the professions.
The data from the Australian Bureau of Statistics (ABS) also shows that refugees are more likely than other migrant or native Australians to have started their own businesses.
Migrant taxpayers generated $112 billion in total personal income in Australia in 2016-17, according to the ABS data.
About 91 per cent of total income earned by migrants was employee wages or salaries ($102 billion) and more than half (61 per cent) of migrant taxpayers held a skilled visa with skilled migrants generating $81 billion, or 72 per cent, of the total income earned by migrants.
But refugees were more likely than other migrant streams to be earning money from their own businesses.
Among migrant taxpayers, 61 per cent held a skilled visa, 28 per cent held a family visa and 5.1 per cent held a humanitarian visa, meaning they were refugees.
The ABS figures show that the $112 billion in personal income was an increase on total migrant income of 7 per cent on 2015-16.
Of the total, $81 billion, or 72 per cent, in income was earned by skilled migrants, $25 billion, or 23 per cent, by family migrants and $3.4 billion, or 3 per cent by humanitarian migrants.
The data also shows 91 per cent of all of the money earned by migrants was employee income ($102 billion), an increase of 7 per cent on 2015-16. $6.3 billion (5.6 per cent) was business income and $3.1 billion (2.8 per cent) was investment income
It shows skilled migrants reported the highest proportion of employee income at 92 per cent but refugees reported the highest proportion of own unincorporated business income at 13 per cent while family migrants reported the highest proportion of investment income at 4.5 per cent.
Overall, in 2016-17 there were 2 million migrant taxpayers, an increase of 6.9 per cent on 2015-16. About 1.7 million migrant taxpayers, or 87 per cent, reported employee income.
“Of these, 62 per cent were skilled migrants, 27 per cent were family migrants and 4.8 per cent were refugees,” the ABS report said.
“Around 1.2 million migrant taxpayers (61 per cent) reported investment income, of these: 66 per cent were skilled migrants; 26 percent were family migrants and 3 per cent were humanitarian migrants,” it said.
The report said 270,000 migrant taxpayers, or 14 per cent, owned a business income, of these: 56 per cent were skilled migrants; 30 per cent were family migrants; and, 8.5 per cent were humanitarian migrants.
The ABS data shows that for all age groups, male employees generally had higher median employee incomes than female employees in 2016-17.
Male employees aged 45 to 54 years had the highest median income of migrant taxpayers at $78,840 while both males and females aged 15 to 17 years had the lowest median employee income at $5,066 and $4,940 respectively.
For female employees, those aged 45 to 54 years had the highest median employee income at $49,223.
When looking at different visa streams, the data shows that skilled male employees aged 45 to 54 years had the highest median employee income of migrant taxpayers at $88,530 while male employees aged 15 to 17 years of age with a provisional visa had the lowest median employee income of migrant taxpayers at $4,442.
Skilled female employees aged 45 to 54 years had the highest median employee income of female employees at $57,350 while humanitarian female employees aged 15 to 17 years had the lowest median employee income of female employees at $4,596.
For both male and female migrant taxpayers, the highest median employee income was reported by Professionals at $92,606 and $69,661 respectively.
Migrants from the five most common countries of birth made up over half of migrant taxpayers and together generated 54 per cent ($60 billion) of total income.
The most common countries recorded were: 19 per cent United Kingdom ($21 billion); 16 per cent India ($18 billion); 8 per cent China ($9.0 billion); 5.7 per cent South Africa ($6.4 billion), and: 5.1 per cent Philippines ($5.7 billion).
Skilled migrant taxpayers mainly held the following visas: 23.9 per cent held Regional Skilled Independent and Skilled Independent visas and 22.8 per cent held Skilled Employer Nomination and Employer Nomination visas.
Hey were most commonly born in the following countries: India (20 per cent); United Kingdom (15 per cent); and, China (13 per cent).
Skilled migrants born in the United Kingdom reported the highest proportion of total skilled migrant total income at 20 per cent ($16 billion), followed by China with 19 per cent ($15 billion).
Skilled migrants were most commonly employed in the following broad occupation groups: 35 per cent Professionals (19 per cent males, 16 per cent females); 13 per cent Managers (8.4 per cent of males, 4.7 per cent females); 11per cent Technicians and Trades Workers (9.5 per cent males, 1.9 per cent females); and, 10 per cent Clerical and Administrative Workers (3.2 per cent males, 6.7 per cent females).
The ABS data shows the highest median employee incomes of skilled migrant taxpayers were: medical practitioners ($148,357); ICT managers ($117,502); stationary plant operators ($106,659); and construction, distribution and production managers ($105,501).
The data shows there were 96,500 humanitarian migrants or refugees in Australia in 2016-17, representing 5.1 per cent of all migrant taxpayers.
Refugee taxpayers generated $3.4 billion (3.0 per cent) in total income and had a median total income of $30,365.
Of these, 67 per cent were males who earned $2.4 billion, or 71 per cent of total humanitarian migrant income.
Another 33 per cent were females who reported $984 million (28.9 per cent) of total humanitarian migrant income. Over two-thirds, or 68.7 per cent, of these humanitarian migrant visas were granted offshore.
About 34 per cent were aged 25 to 34 years of age.
The data shows refugee taxpayers were most commonly born in the following countries: Afghanistan (15 per cent); Sudan (13 per cent): and. Iraq (12 per cent).
Refugee taxpayers were most commonly employed in the following jobs: 27% Labourers (27 per cent); Community and Personal Service Workers (14 per cent); Technicians and Trades Workers (11 per cent); Professionals (9.4 per cent).
The highest median employee incomes of refugees were: medical practitioners ($111,873); ICT managers ($92,229); Defence force members, fire fighters and police ($75,267); and, Business and Systems Analysts, and Programmers ($67,352).
Refugee taxpayers represented 8 per cent of migrants who reported business income in 2016-17 even though they were just 5 per cent of the overall migrant population.