The acceptance of newcomers as either immigrants or asylum seekers has been a recurring issue in Australian politics. Both the size of Australia's intake of economic migrants and the resettlement of asylum seekers held offshore have been contentious political issues. Research in other immigrant-receiving countries has identified numerous factors shaping attitudes toward immigration and asylum policy. These include political factors (such as party identification) and local demographic context – both immigrant concentration and change in immigrant concentration over time. Still, few studies of Australia have considered the effects of genuinely local demographic context, or how local context moderates the effects of political factors on attitudes toward immigration and asylum policy. Drawing on survey data from the Australian Election Study (2010–2016) and local-level census data, this article advances an explanation of Australians' attitudes toward immigration and asylum policy centring on the roles of party identification, local demographic context, and their interaction.