Claims circulating online that Indian migrants send more money overseas than they contribute in income tax have reignited debate about remittances out of Australia.
The issue has returned to public debate as One Nation’s political profile has risen and some of its representatives and supporters have renewed calls for closer scrutiny of money sent overseas. Most recently, Queensland Senator Malcolm Roberts shared a social media post claiming Indian migrants send more money overseas than they pay in income tax, asking followers: “What do you think?” The post attracted calls for a tax on remittances from many One Nation supporters.
The debate centres on remittances from Australia to India, which reached $7.3 billion in 2024, according to analysis by Money Transfer Australia using data from the World Bank, KNOMAD, the Australian Bureau of Statistics and other sources. The figure has doubled from $3.8 billion five years earlier, making India Australia’s largest destination for overseas money transfers.
Supporters of a remittance tax argue that income earned in Australia should remain within the domestic economy and contribute to local growth. Critics counter that remittances are generally sent from income that has already been taxed and argue that any discussion about money leaving Australia should also consider corporate profit transfers, royalties and other offshore payments.
The claim that Indian migrants remit more money than they pay in tax has become a recurring feature of the discussion. However, establishing a direct comparison is difficult.
While remittance data is reported regularly, Australia does not publish a current real-time figure showing total income tax paid by residents based on country of birth. Previous estimates have suggested Indian-born taxpayers contributed billions of dollars annually in income tax, but there is no official up-to-date aggregate figure available for direct comparison against remittance flows.
The debate has also expanded beyond migration and remittances.
Former Queensland senator and People First Party founder Gerard Rennick has argued that policymakers should examine all forms of money leaving Australia, including payments made by multinational corporations.
“Netflix posted $1.47 billion in revenue in Australia in 2025, $1.35 billion of which was sent overseas as ‘distribution fees’ to its parent entities.”
According to figures cited by Mr Rennick, Netflix Australia retained $119 million in revenue after offshore payments, reporting $20 million in profit and paying $16 million in income tax.
“This allows them to transfer vast amounts of money abroad, very little of which is taxable in Australia. Netflix had an effective local profit margin of 1.4 per cent of its total Australian revenue.”
Mr Rennick said multinational tax arrangements receive less public attention than migrant remittances.
“Globalists often talk about tariffs and how bad they are for free trade, but you rarely hear them complain about reverse tariffs whereby multinational companies can send profits offshore at tax rates much lower than onshore tax rates.”
He argues that withholding tax arrangements attached to some international transfers warrant greater scrutiny.
“For example the withholding tax on royalties paid to the U.S. is just 5%.”
“Netflix can save 25% in every dollar it transfers offshore.”
Mr Rennick estimates this results in hundreds of millions of dollars in foregone company tax revenue, although he acknowledges that some offshore payments reflect legitimate production and operating costs.
“To be fair to Netflix, some of the fees paid offshore should be offset by production costs but not at rate of 98.6% in the dollar. I.e 1.4% margin.”
The remittance figures themselves reflect a growing Australia-India economic relationship. India remains Australia’s largest source of overseas remittance transfers, accounting for roughly one in five dollars sent abroad.
At the same time, Australia receives substantial inflows linked to India through international education, tourism, investment and skilled migration.
Department of Education figures show international education generated $53.6 billion nationally in 2024-25. Indian students are among the largest contributors to that sector, with enrolments reaching about 159,000 in the year to July 2025.
Tourism Australia data shows Indian visitors spent approximately $2.7 billion in Australia in the twelve months to September 2025.
The Indian-born population reached an estimated 971,020 people as of June 2025, according to the ABS, making it Australia’s largest overseas-born community.
Those figures do not resolve the question of whether remittances should be taxed. Critics of migration continue to raise concerns about housing demand, infrastructure capacity and population growth, while others argue remittances represent private earnings that have already been taxed before being transferred overseas.
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