Advocacy groups have blasted Tuesday's federal budget, saying it shows refugees are "not a priority for Australia".
One of the budget's few saving measures was a , while newly arrived refugees will now need to wait one year - instead of six months - before they are required to access Centrelink's job-search program Jobactive.
The government has defended the measure, saying it allows refugees to focus on settlement and language assistance before looking for a job, and eligible refugees can participate earlier if they wish.
Treasurer Josh Frydenberg has delivered his first federal budget. Source: AAP
But advocacy groups are calling it a "deep cut".
CEO of the Federation of Ethnic Communities Councils of Australia (FECCA) Mohammad Al-Khafaji said he was "very concerned" with the news.
"The $78 million cut basically says refugees are not a priority at the moment," he told reporters on Wednesday.
"We welcome the fact they have realised that six months is not enough for newly arrived refugees to learn English and they have extended that to 12 months ... [But] we are disappointed that the money has not been reinvested in the refugee sector."
He questioned why, with a $7.1 billion surplus, more money was not going to refugee services.
FECCA's Mohammad Al-Khafaji on Wednesday. Source: SBS News
"Some of the most vulnerable communities are refugees and asylum seekers and to ignore them sends a worrying sign about who we are as a nation," he said.
A spokesperson for Jobs Minister Kelly O'Dwyer told SBS News the changes to Jobactive "support newly arrived refugees to better focus on settlement and language assistance before looking for a job, while ensuring that those who are ready to participate in the labour market can access the full suite of Jobactive services".
"Refugees who wish to voluntarily participate in Jobactive prior to the 12 month mark will be able to access the full suite of Jobactive services commensurate with their level of disadvantage."
But the Refugee Council of Australia had similar concerns about the changes to Jobactive.
"It is shocking that none of the funding saved is being reallocated to offer refugees more constructive assistance in their search for employment,” CEO Paul Power said in a statement.
Kelly O'Dwyer has supported the jobs shakeup. Source: AAP
Mr Power also said the allocation for asylum seeker support administered by the Department of Human Services faced a more than 60 per cent cut over two years, from $139.8 million in 2017-18 to just $52.6 million in 2019-20.
"While the number of people seeking asylum has doubled over the past four years, the government has savagely cut access for people who are unable to find work," Mr Power said.
"Thousands of people have been forced off the Government's Status Resolution Support Services (SRSS) program and many more who need assistance have been prevented from getting access to SRSS help in the first place."
Australian Federal Treasurer Josh Frydenberg speaks at the dispatch box during the delivery of the 2019-20 Federal Budget Source: AAP Image/Lukas Coch
But the groups did welcome $64.2 million being earmarked in the budget for so-called "social cohesion" measures, which help migrants "become established and integrated in their communities".
More than $12 million over three years will be spent to establish the Community Languages Multicultural Grants Program, which will "support community language schools and connect young Australians to the language, heritage and culture of their community".
Refugees walk through a camp in Hasakah, northeast of Syria, following the final attack on IS. Source: AP
A further $22.6 million over four years will be spent on growing the National Community Hubs Program and establish the National Youth Hubs Program.
However, FECCA's Mr Al-Khafaji said his group was "not consulted on any of those measures and we would like to have an opportunity to have some input".
