More than 160 community, charity, multicultural and migrant organisations have urged the Australian Government to reconsider reported plans that could restrict the right to work for people seeking asylum.

The organisations have written to Prime Minister Anthony Albanese warning that removing work rights could leave thousands of people without an income while their immigration claims and appeals are still being processed.

Under the reported proposal, people seeking asylum could potentially lose permission to work after the initial stage of their application, even when they are legally pursuing independent review. Advocacy organisations say this could affect tens of thousands of people who currently work, pay rent and support their families.

The issue is particularly significant because people seeking asylum generally cannot access Centrelink payments. According to the Asylum Seeker Resource Centre, only around 3% have access to limited government-funded income support.

Charities argue that removing work rights could therefore increase demand for emergency assistance, including food, housing and financial support, at a time when community organisations are already under pressure.

The organisations also warn that people unable to work legally could become more vulnerable to cash-in-hand employment, wage theft, unsafe workplaces and exploitation.

Supporters of maintaining work rights argue that allowing people to earn an income reduces their reliance on government and charitable assistance while enabling them to contribute to the communities in which they live.

The debate comes amid wider political discussion about Australia’s migration system, visa processing and asylum policies.

The organisations involved are calling on the government to maintain access to employment and appeal rights, arguing that any changes should protect due process while avoiding measures that could push people who are currently self-sufficient into poverty.

The government has not indicated that the reported changes have been formally adopted, leaving the future of work rights for thousands of asylum seekers uncertain.