Refugees settled in Australia are being treated with disrespect by federal service providers and having their welfare payments unfairly docked, according to a new report by the Refugee Council of Australia.

The draft paper, obtained by the ABC, examines a number of issues affecting humanitarian arrivals who have been settled in Fairfield, in Sydney's west.

The report includes several examples of hostile treatment from staff at government service provider Jobactive, such as a case where a refugee was told they had only come to Australia to get "easy money".

Another, 32-year-old Karen, who did not want to be identified, said he was routinely treated with disrespect.

"They once told me that my clothes and shoes are very dirty and that I looked shabby," he said.

"I felt ashamed... but I could not do anything due to my dependence on Centrelink payment and my limited English."

In some cases, refugees reported having their welfare payments docked for missing appointments with employment services — even if they had a valid excuse.

Can you work in Australia if you don't speak English?

Tony Fares, 55, arrived in Australia two years ago, after fleeing the war in Syria with his family.

Like many refugees, he only speaks a little bit of English, and relies on his caseworker Murshid Amer, from CORE community services, for help.

"It's very difficult for one to stand in front of someone, and you want to speak, but you can't speak," Mr Fares said.

After a year of searching, he found a job at a local council.

"I am very, very happy... God helped me and my son find work, and that made a difference in our lives."

Mr Fares is one of the lucky ones.

Refugee Council of Australia chief executive Paul Power said refugees were routinely being pulled out of English classes to attend compulsory Jobactive meetings, that did not result in employment.

"I think our belief is unless people have a base level of English they're not going to have many opportunities for work in the modern age," Mr Power said.

'Reforms are much needed': Refugee Council

The Refugee Council has called for an independent review of the $1.4-billion Jobactive program, saying it is largely failing refugees.

In a statement issued to the ABC today, the Australian Government said they were completely unaware of any refugees being treated with disrespect.

Last week, the Assistant Minister for Social Services and Multicultural Affairs, Zed Seselja, announced changes to the Government's settlement policy, aimed at cutting red tape and improving communication between refugee support services.

"We do settlement better than anywhere in the world but we want to improve it and we want to improve it in a range of areas," Mr Seselja said.

He said the program would improve English language, education and employment outcomes for humanitarian entrants.