A Note on Remittances: Scrutiny or Assumptions?
Susan Safi 17 March 2026
Often particular sections of society find themselves under scrutiny and obstacles place in their way, whilst in contrast, another, albeit a well-connected and influential community may receive little or no attention, even encouragement, for engaging in the same activity or issue, in this case overseas remittances, be that individual remittances or funds raised by registered charities for overseas projects, often receiving (DGR) – Deductible Gift Recipient status, courtesy of Australian taxpayers. This issue will be expanded on below.
Recently, on a social media post, the issue of remittances to countries
outside of Australia was raised. Without perhaps sufficient details, let alone
regarding the status of a person mentioned in the post, a number of commenters
expressed, “colourful”, to say the least, opinions about him and other
Australians from migrant backgrounds.
Attention was paid to a long term (38 years) citizen of Australia, a businessman,
academic, political reformist and former Federal Minister (Telecommunications)
in the pre-civil war Somali government, Mr Mohamed Ibrahim. In recent years, he faced the closure of his
remittance business bank accounts used to send funds to Somalia. This action, driven
by banks' fears of violating AML/CTF (Anti-Money Laundering and
Counter-Terrorism Financing), comprises part of a larger issue where legitimate
money transfer services are hindered by stringent anti-terror financing
measures.
In the case of the Somali-Australians, to date, 8101 were born in
Somalia with the majority arriving from 1991-2000 and into the next decade. Of
these 4,291 live in Victoria, mainly in urban areas. As expected, concern for
loved ones in Somalia, is put into practice by sending money – or as is
expressed in Australia, as “remittances”. Their children born in Australia, many
having gained professional qualifications and pursuing professions, or employed
in various capacities, contribute to “remittances” sent to family.
An estimated 7,500 to 20,000
Somali-Australians send between $10.5 to over $33.5 million dollars annually
to Somalia, providing a critical financial lifeline for families to pay for
food, education, and healthcare, with funds often exceeding official Australian
humanitarian aid to the region, and that is despite logistical obstacles with money
transfer operators (MTOs) struggling with
bank account closures due to risk concerns. Many Somali-Australians rely on
specialized, often ethnically-based, money transfer operators rather than
banks, as banks do not have the reach in Somalia. The money is considered a
"lifeline" rather than optional support, with many sending a portion
of their income on the first of every month. Below are some relevant references.
(1) ECCV Social Cohesion Policy Briefs 5 Remittances (2) Oxfam 2015(3) Hiiram 2014 (4) Herald Sun 2014 (5) wardheernews 2014 (6) The Conversation (2015) (7) The issue is discussed more recently by Mr Ibrahim and others in this video of 2020. and here,(8) ABC News 2020
Some Somali- Australian community leaders contribute to exploring solutions to these difficult issues such as this project that looks at systems and governance strategies
for Somalia. To make sweeping statements and conclusions about this community seems unwarranted.
On the other hand, moving on to the issue raised in the introduction about a well-connected and
influential community, in contrast to the Australian Somali community, historically there is little or no attention to their activities regarding
overseas remittances.
Based on a 2025 report covering 2024 data, Israelis in Australia have been identified as sending the highest amount of remittances per capita, with an average of approximately $35,960 to $36,025 per migrant annually.
According to 2024–2025 financial reports and charitable data, Israeli
Australians send money to Israel for a wide range of personal, humanitarian,
and national causes. The exceptionally high per-capita remittance rate suggests
significant wealth transfers as well, investments, or high-value donations
alongside typical family support.
According to this report, given political and humanitarian concerns, it is noted that considerable
donations by Israeli-Australians and Jewish-Australians are gathered by
registered charities, many having DGR Status; that is a tax-deductible status,
in effect, Australian tax-payer support. Many of these charities facilitate
millions in transfers to Israel, often for projects aligning with Israel’s national priorities such as,
support for lone soldiers, for the "Lone Immigrant Soldier" program,
which provides housing, grants, and counseling for immigrants serving in the
Israel Defense Forces (IDF) without local family, for Military Equipment where
some fundraising campaigns have been identified as providing non-lethal
tactical gear directly to IDF units, funds for “Settlement Projects”,
including, allegedly, for organisations linked to settlement-related activities
in the West Bank as well as for emergency & crisis relief, hospitals,
equipment, and medical related costs, civilian infrastructure. Private
investment flows into Israel's innovation and technology sectors, including technology
training programs, the likes of Net@, training youth in advanced technology,
often, apparently, resulting in their qualifying for elite military units
later.
Some of the potentially moral, legal and political considerations, including
questions of double-standards around this funding and “remittances” are
discussed by UN Special Rapporteur on the Situation of Human Rights in the
Palestinian Territories, Francesca Albanese, where she stated in a 2025 report,
that faith-based charities constitute “key financial enablers of illegal
projects” in the Occupied Territory, often benefiting from tax concessions
abroad despite strict regulatory frameworks.
The concerns raised are expanded on in this article which presents a detailed breakdown
of Jewish/Israeli remittances as well as funding and data. Reading the entire article is
essential to obtain references for further reading and context to the thoughts presented here.
Concluding Thoughts
For Australians and agencies sending “remittances” overseas, the responsibility
of following our laws related to this are crucial and, in the case of
Somali-Australian individuals or agencies and Jewish/Israeli individuals and
agencies, the onus is on them to ensure the laws are followed.
When it comes to
laws and procedures, in the context of human rights and relevant international
laws, it is possible that there are situations where standards and conditions
apply to some sections of the Australian community to the point of possible
overreach and obstruction, whilst for another section of the Australian community, such questions or concerns are not even considered.
So
often double standards exist where assumptions of nefarious intent are assumed in
one section of the community and, in another section of Australian society, such
considerations in many cases are completely overlooked and not even questioned.
