Australia will spend an extra $150 million on offshore processing this financial year in a budget that’s been widely panned by refugee advocates.

Treasurer Jim Chalmers’ first budget saw offshore processing funding jump to $632.5m, a move that’s been labelled “deeply disappointing”.

Refugee Council of Australia chief executive Paul Power said it took the country’s total offshore processing spend to nearly $12b since the centres were reopened in 2012.

“We are appalled to see yet again that the funds allocated to positive changes in immigration and refugee programs are overshadowed by the increased allocation to the Australian government’s offshore processing policy,” he said.

Asylum Seeker Resource Centre chief executive Kon Karapanagiotidis agreed, his organisation encouraging the government to stop pumping money into the “moral and financial blackhole of immigration detention and holding refugees offshore”.

“More than half a billion is being spent to harm people who turned to us for help, safety and protection,” he said.

“It’s time to right the wrongs of the past decade, not continue the status quo of unfairness by denying refugees and people seeking asylum access to mainstream social support and a safety net.”

The budget contained no word on Labor’s pledge to expand its humanitarian intake to 27,000 places per year across four years in another move that disappointed advocates.

“COVID-related border closures and disruption saw refugee resettlement to Australia drop to a 45-year low in 2020-21 but lost places were never restored,” Mr Power said.

“We look forward to the Albanese government outlining concrete steps for when and how it will increase the humanitarian program as well as a quick announcement on the implementation of its pre-election commitment to end temporary protection.”

The budget had $20m for the Adult Migrant English Program and $42.2m over two years to increase visa processing.

Some $18m over four years will fund additional three-year visas to Ukranians and extend Medicare coverage to them for 12 months.

Settlement Services International chief executive Violet Roumeliotis said budget measures designed to clear the visa backlog and review multicultural policies showed the government was reprioritising Australia’s diverse community.

She welcomed investment in a national anti-racism strategy.

“The strategy must be grounded in the experience and knowledge of people who experience racism in Australia including First Nations people and newcomers,” Ms Roumeliotis said.

“It must be well-resourced over a number of years to ensure it can be designed and implemented in partnership with people and communities who experience racism, which is why it is so heartening to see the government commit to a four-year investment of $7.5m.”

– AAP