Some 1,000 refugees living in Australia on temporary protection visas will be granted permanent residency.

The decision was announced in the Federal government's latest budget earlier this week, with Treasurer Wayne Swan saying Canberra would abolish the so-called "Pacific Solution" set up by the previous government of John Howard.

Under the former program, refugees had no rights to travel, had limited access to programs such as English language classes, employment and income assistance, and could not be reunited with relatives.

Immigration Minister Chris Evans says the decision will end the limbo suffered by many refugees, and allow them to enjoy a more secure future.

"This decision allows a thousand remaining TPV holders to get on with their lives, many of whom were held on Nauru for many years and then have been subjected to quite inhumane treatment while in this country as a result of the conditions the previous Government imposed on them," he said.

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