NSW offers regional visas to refugees to motivate rural economy

Asylum seekers who bypass the city for the country will be settled in NSW regional towns as the state becomes the first to sign up to Australia's new Safe Haven Enterprise Visa scheme.

The five-year visas, introduced last year, will be an option for refugees prepared to work or study outside of Sydney, Newcastle or Wollongong.

NSW Premier Mike Baird said the scheme will provide labour to rural regions and offer security for asylum seekers.

"As Australia's economic powerhouse, NSW has an obligation to open its arms to those who are genuine refugees," Mr Baird said in a statement.

"I am proud that NSW is the first state to sign up in principle to the Safe Haven Enterprise Scheme (SHEV), which will give asylum seekers an alternative to the Temporary Protection Visa, with a five-year option to live and work in regional NSW."

There are 32,000 asylum seekers in Australia eligible for refugee assessment and waiting for final determination, most of whom are living in communities on bridging visa.

More than 8000 of these live in NSW, mostly in Sydney's west and south west.