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Its a NZ/Aussie name for them, because originally all the people sent to colonise Australia were criminals and so they became known as "Prisoners Of Mother England" or "Poms".
It's an acronym. Just like the tags used to identify the kit bags of the British military while overseas said "OHMS" on them (On Her/His Majesty's Service) -no Jame's Bond stuff--just meant active duty usually overseas.
So the slang word "POM" " is actually taken from the official Acronym "POHM". Prisoner of His(or Her)Majesty"
The Brits would often nickname a convict a "POM" (rhymes with "TOM") which is how "POHM" sounds if made into a word.
It USED to be a Brit derogatory term for an Aussie, but resourceful people that they are, they turned it around as they are no longer ruled by Mother England and therefore no longer "POHM's" which of course anyone from England still is, as they still have the Royals.
