'Nation richer for migrants' rallies in support of refugees told

Hundreds of people have marched through Melbourne's city centre in support of welcoming more refugees into the country.

Australia needs to remember its past compassion for refugees, a rally in Melbourne has been told. (AAP)

Past generations of Australians welcomed refugees with open arms and the nation is richer for it, a pro-asylum seeker rally in Melbourne has heard.

Several hundred people braved the rain for the Walk Together march through the city's CBD and, notably, past the Greek and Little Chinatown food districts.

"We didn't always keep people in legal limbo for many years after fleeing war and fleeing death," federal Greens MP Adam Bandt told the crowd after it gathered at Federation Square.

"When we treat boat people like people, we are all better off."

Mr Bandt said Australia needed to remember the compassion of the past, including under Liberal prime minister Malcolm Fraser, when the nation extended open arms to refugees and "not a closed fist".

Federal Labor MP Andrew Giles said there were almost 60 million displaced people in the world and Australia had to "face up to our responsibilities as a rich and free nation".

"The politics of asylum (seekers) haven't done much for Australia, haven't done much for the sort of country I want to live in, over the past 14 years," Mr Giles said.

The marchers carried signs that read "Common people, common dreams" and "We are all people we are all equal".

Kate Milton, from Healesville, joined the march with her three young children and husband.

"We just believe that everybody is welcome here in Australia," she said.

The march was held in 26 cities and towns across Australia as part of the National Day of Unity.