The program provides a safety net, including payments of less than $35 a day and casework support, for those people awaiting news on their immigration status.
The Department of Home Affairs says in a statement the Status Resolution Support Service is not a social-welfare program.
The department says it is only designed to provide short-term, tailored support to those with demonstrated barriers to resolving their immigration status.
The statement says individuals on bridging visas with work rights and the capacity to work are expected to support themselves while their status is resolved.
It says assessment of recipients' eligibility is underway and no recipients have been cancelled from program due to the review process yet.
