Whittlesea council fears asylum seekers living in Whittlesea will struggle to pay rent and bills if the federal government does not reverse plans to cut payments.
Last year, the government announced plans to end Status Resolution Support Services for asylum seekers in Australia on bridging visas.
The SRSS provides asylum seekers with a payment that is about $35 a day as well as case management support.
They can also access counselling to help them cope with past traumas.
The council has joined a campaign by councils from across the state, calling for the funding to continue.
Cr Sam Alessi said there are more than 1000 asylum seekers living in Whittlesea.
He said that without the SRSS, they would struggle to pay rent or buy food.
“It is important that people who are being placed in our community get the meagre assistance funds they currently receive,” he said.
“They get nothing and are thrown on the scrap heap. It will be NGO operations who have to look after them.
“We want the federal government to support vulnerable people in our community.”
Mayor Kris Pavlidis, who raised the issue at last week’s council meeting, said support services, charities and councils would be forced to fill the void.
“We are calling on the federal government to uphold its responsibilities.”