Australian cash props up Nauru

The central Pacific Island of Nauru.

Australian taxpayers will prop up Nauru's ailing finances more than residents of the tiny Pacific Island nation.

Australia will provide at least A$38 million ($41 million) for the island government's annual budget of nearly A$112 million in 2014-15.

But the 10,000 residents, some of whom will pay income tax for the first time, contribute only A$4 million.

Nauru receives a A$1000-a-month visa fee - A$13.2 million a year - from Australia for each of about 1100 asylum seekers being held at the island's detention centre, which employs 790 Nauruans.

It will get another A$5 million from resettlement visas for asylum seekers found to be refugees.

So far, Nauru has resettled 41 refugees on a temporary basis until a third country, expected to be Cambodia, agrees to a deal with Australia.

On top of the visa charges, Canberra also pays A$20.7 million for development assistance. An A$6000 business visa fee for expatriate workers will raise A$1.56 million. Last year the visa fee for journalists was hiked from A$200 to A$8000.

High-income earners on Nauru will pay a flat 10 per cent income tax rate from October 1, netting the budget about A$4 million.

Nauru Finance Minister David Adeang warns employment is "virtually full", which does not bode well for resettled asylum seekers.

- AAP