This decline was in part due to decreased demand and opportunities within the gold industry. Many Chinese returned to their homeland. However, the introduction of the 'White Australia Policy' also had a significant impact.
In 1933 there were only 735 Buddhists in Australia, decreasing over the following 15 years to 411.

Between 1947 and 1981 Buddhists were not identified in national censuses. Only 1981, were they again distinguished from other religious groups. At this time, there were over 35 000 Buddhists in Australia representing 0.24 percent of the population. From the eighties until the present, immigration from south-east Asia has been a key factor in the growth of Buddhism in Australia. By 2001, Buddhists had reached 360 000 or 1.91 per cent of the population. This represents an increase in numbers of 158 000 in the 5 years since the 1996 Census and an increase as a proportion of the population by 0.78 per cent.

Thus, despite fluctuation in the early years, Buddhism is now the fastest growing religion in Australia. Many people of an Anglo-Celtic origin have shown interest in Buddhism. A survey in 1998 found that 11.5 percent of the Australian adult population had practised a form of Eastern meditation in the last twelve months. However, comparatively few convert to Buddhism, adopting it as their religion and identifying themselves as Buddhist in the Census. In the 2001 Census, just under 28 000 of the total 358 000 Buddhists were Australians born of Australian parents.

At beginning of the twenty first century, Buddhists represent a greater proportion of the population than at the end of the nineteenth. This rapid growth is of particular interest given that it is occurring at a time when many other religious groups have experienced considerable decline. Many Buddhists who have come to Australia currently have young families and the number of Buddhists will continue to grow, although the rate of growth will decline without further immigration from Buddhist countries.