Revealed, Australia’s surprising army of philanthropists and how they help the world
Who do you think of when asked to picture the most generous philanthropists in Australia?
Is it wealthy donors like Andrew Forrest and the Myer family, or perhaps one of the top corporate givers? Or the many individuals who donate to charities?
Together they certainly play a vital role in supporting social, environmental, education and cultural initiatives.
But arguably the most generous Australians are found within Australia’s diaspora communities.
This week we celebrates International Day of Family Remittances – the money sent home by migrants to support relatives, fund education, pay for healthcare and assist during crises.
Remittances are more than just financial transactions; they are a lifeline for millions of families, a catalyst for economic empowerment, and a key driver of sustainable development.
And the scale is huge.
In 2023 alone, across the globe, migrants and diasporas sent more than $1.3 trillion in remittances to their countries of origin, with close to $1 trillion to low- or middle-income countries, exceeding official development assistance and equalling foreign direct investment.
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Australia has large diaspora populations, with more than 30 per cent of its residents born overseas.
Many of these individuals maintain close familial and community ties to their countries of origin. The World Bank estimates that Australians send over $10 billion in remittances each year, a figure more than double Australia’s official development assistance.
And even this underestimates the volume of support, with important non-financial material contributions like household goods, educational and health items.
Many countries in Australia’s immediate region, including Samoa, Vanuatu and the Marshall Islands, derive a significant portion of their GDP from remittance payments.
In Tonga remittances have accounted for a staggering 40 per cent of GDP since 2020. This has been facilitated by initiatives like the Pacific Labour Mobility Scheme (formed in 2023 with the consolidation of the Seasonal Worker Programme and Pacific Labour Scheme) which not only helps address labour shortages in Australia but also enables a stream of remittances.
And it’s not just close to home. For example, Australia’s Zimbabwean community of 35,000 people sends around $70 million annually back to Zimbabwe, dwarfing Australia’s bilateral assistance to the country.
The role remittances play at the household, community and national level, as well as the contribution they can make to achieving the Sustainable Development Goals (SDGs), is widely recognised.
Remittances have been shown to almost double school enrolment and improve school attendance, for example, while remitters’ investments in small business enterprises can stimulate employment opportunities and generate income in local communities.
Remittances can also have a transformative impact on gender equality, both at the receiving and sending ends.
While government aid budgets fluctuate due to domestic politics or economic constraints, as we are currently seeing with massive aid cuts worldwide, remittances tend to remain steady and can respond to immediate needs.
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Remittances play an important role in responding to crises. During emergencies, such as cyclones or natural disasters, remittances often arrive faster than official aid. This rapid, targeted assistance is critical in fragile contexts where timely intervention can save lives.
The generosity of diaspora communities in Australia bears emphasising. Many remitters work extra hours or begin a second job to send, on average, 11 per cent of their income overseas – money that could be spent on their own standard of living.
Remittances reflect the enduring emotional and cultural ties between diaspora communities and their countries of origin. They are a way for migrants to remain connected to their families and heritage.
For Australia, this dynamic reinforces the multicultural fabric of the nation, promotes better cross-cultural understanding and strengthens diplomatic relationships.
It means that one of the biggest drivers of development in the region isn’t government, but rather Australia’s diaspora communities.
However, that doesn’t mean the Australian government can’t play a role as part of a whole-of-nation approach. Transfer fees remain high in some corridors, particularly to the Pacific Islands, where market competition among money transfer operators is limited.
This reduces the net amount families receive and undermines the developmental impact of remittances.
Anything government can do to reduce costs would have an outsize effect.
In Tonga, for example, a 3 per cent reduction in transaction fees would save remitters almost $20 million per year, equivalent to Australia’s ODA to the country in 2020–21.
Other areas, like seasonal worker access to superannuation earned, would have a huge developmental impact.
With a key expert on remittances, Jessica Collins, recently elected as a Senator for New South Wales, expect a focus on this in next Parliament.
The example not to follow is President Trump, whose ‘big, beautiful bill’ includes a 3.5 per cent tax on remittances.
Research suggests this would lead to a 5.6 per cent drop in remittances from the US, placing further stress on communities in developing countries already hit hard by the Trump Administration’s aid cuts and tariffs.
Today is a day to recognise a group of often unrecognised philanthropists: the diaspora communities who support families, drive economic development and promote regional stability. They are arguably the most generous Australians – and their sacrifices are helping support Australia’s interests.
Remittances represent a significant and multi-faceted flow of capital from Australia to the world, particularly to the Asia-Pacific region.
As Australia continues to grow as a diverse and globally connected nation, the role of remittances will remain a vital part of its international engagement and domestic identity.
Melissa Conley Tyler is executive director and Heather Wrathall is Senior Policy Analyst at the Asia-Pacific Development, Diplomacy & Defence Dialogue.
