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There are ongoing concerns that asylum seekers who have been tortured and who suffer trauma‐related mental disorders are being refused protection by countries in which they seek asylum. The study described here assessed a consecutive sample of recently arrived asylum seekers attending immigration agents in Sydney, Australia, using a series of structured measures. Participants were followed up to assess the outcomes of their refugee applications. The 73 participants, who had resided in Australia for an average of 4.3 months, reported high rates of torture (51%), and that group was at highest risk of suffering a combination of post‐traumatic stress disorder (PTSD) and major depression, a response pattern associated with substantial levels of psychosocial disability. Neither past torture nor current psychiatric disorder influenced the outcomes of refugee applications. The study raises further concerns that tortured asylum seekers and others with trauma‐related mental disorder may be at risk of repatriation to their countries of origin.