Indian and Chinese community leaders have spoken out against the Coalition’s plan to stop allowing permanent residents to collect welfare, claiming it would damage social cohesion.

Opposition leader Angus Taylor announced the plan in his budget reply speech last week, where he also said migration targets should be tied to home completions, surprising many Aussies who said they were unaware non-citizens were eligible for taxpayer-funded benefits and the NDIS.

But prominent immigrant community representatives have called the plan “shameful”, and said removing permanent residents from welfare programs would “create division”.

Outspoken lobbyist Amar Singh, the founder of charity Turbans 4 Australia, told Nine Newspapers the discussion about limiting welfare to Australian citizens was having a negative impact on the Indian community.

“It’s shameful that these politicians are targeting future Australians, people who are on valid visas that are paying taxes, giving back, and yet they are not being treated as human beings,” he said.

“It’s really hurting the community’s sentiment and mental health, this constant battering about migration.

Every migrant feels that pain. We always get pointed out for everything, but at the end of the day, Australia is built on migration.”

Jimmy Li, president of Victoria’s Chinese Community Council of Australia, who was an outspoken advocate for Prime Minister Anthony Albanese’s failed Voice to Parliament, said he was alarmed by Mr Taylor’s welfare policy.

“Permanent residents make the same contributions to Australia as citizens.

They work hard, they raise families, they pay the same rate of taxes.

They make contributions to Australian society and communities, and they should be treated the same as citizens,” he said.

“To remove them from the welfare services will create division …

Permanent residents are part of Australian society in every way. It’s not helpful in my view.”

At present, permanent residents are immediately eligible for a Family Tax Part B benefit, must wait one year for access to Family Tax Part A and Carer Allowance, two years for Carer Payment and Parental Leave Pay, four years for JobSeeker, Youth Allowance, Parenting Payment, Austudy, Special Benefit and mobility allowance, and 10 years for the aged pension of up to $1,200 a fortnight.

Victorian Premier Jacinta Allan defended giving non-citizens the aged pension in a statement on Friday, saying it allowed them to keep their passports and rights from their home countries.

Header image: Left, Mr Singh with Mr Albanese and former Labor leader Bill Shorten (Facebook). Right, Jimmy Li (LinkedIn).