The welfare organisation said costing was the main issue.

The plan announced last year was for asylum seekers to live in the accommodation units at Miracle Haven and use the adjacent farm to grow crops or raise animals.

"We've fully investigated all aspects of the asylum seeker project, including costs, and it's not feasible for us," the Salvation Army's territorial secretary for program, Lieutenant Colonel Laurie Robertson, said.

The 200-hectare property would instead be considered for a range of Salvation Army services.

One proposal is the establishment of "transitional accommodation" for graduates of the Salvation Army's Dooralong-based Bridge Program for drug, alcohol and gambling addicts.

Lieutenant Robertson said Miracle Haven could provide a "more normal setting" for graduates of the 10-month live-in program.

"It's been suggested that these people sometimes need somewhere to go for a little while, after the program, and Miracle Haven might provide some transitional accommodation where they would be free to look after themselves for a short time," he said.

Also under consideration is a cattle agistment service to assist drought-stricken farmers in the west of the state.

"We could possibly use the property to agist some breeding stock for people who are suffering on the land from a lack of rain," he said.

Miracle Haven could also be used as a holiday camp, similar to the Salvation Army facility at Colloroy, he said.

Each of these options would be fully explored, with costings.

In the meantime, the Salvation Army has continued to maintain Miracle Haven, and appoint a caretaker.

"We've knocked down a few of the buildings that had asbestos problems, and we've been repairing three or four of the houses to get them to a standard that they can be lived in," Lieutenant Colonel Robertson said.

"That way, if we start any sort of agistment program there will be some accommodation for the folks."

Local opposition was not a factor

THE controversial plan to house asylum seekers at Miracle Haven was opposed by some locals, but their opposition was not a factor in the Salvation Army's decision to drop the idea, Lieutenant Colonel Robertson said.

"I know personally of three people who contacted us with concerns that we might be putting asylum seekers into Morisset," he said.

"Their concerns were mostly to do with property values."

He said the Salvation Army's priority was to always do the best for the people who need it the most.

"Looking after 'the lost, the least, the last' is one of our over-riding mantras."

The organisation's ability to fund the delivery of services was also a major factor in its decision making.

On that score, the Salvation Army took a financial hit in February when it lost a $74 million contract with the federal government for the provision of humanitarian services to asylum seekers on Manus Island and Nauru. They will lose another contract in June.