AbstractThis article assesses the relationship between multiculturalism and neoliberalism, focusing on the Australian context. It analyses recent reforms concerning immigrant integration and cultural diversity, and argues that since the mid-1990s Australian multiculturalism has embodied three central components of state restructuring: heightened demands for sociocultural discipline and conformity, fiscal conservatism and the retrenchment of safety nets, and the promotion of economic competitiveness, flexibility and efficiency in global markets. In retracing the trajectory of Australian policy this analysis contributes to emerging literatures on multiculturalism, and the shifting nature of citizenship and government rationalities in the present neoliberal context. In addition to illuminating recent changes in Australia, its findings display significant import for countries facing similar dynamics.