Australia begins deporting foreign detainees to Nauru under controversial $2.5b deal
Australia has begun transferring non-citizen former detainees to the Pacific island nation of Nauru under a contentious new resettlement agreement worth an estimated $2.5 billion over three decades. The first person from the group—known as the NZYQ cohort—arrived on Nauru this week, triggering Australia’s initial payment of more than A$400 million to the island government.
The group comprises roughly 350 individuals whose visas were cancelled on “character grounds,” many of them with criminal convictions for offences including assault, drug smuggling and other serious crimes. They are unable to be deported to their home countries because of safety concerns, citizenship disputes or refusals by those nations to accept them.
Background: The High Court Ruling and Policy Shift
The arrangement follows a landmark High Court decision in late 2023 which ruled that the indefinite detention of non-citizens with no prospect of removal was unlawful. That judgment forced the government to release dozens of detainees who could not be deported—some with serious criminal records—sparking political backlash and public concern.
In response, Prime Minister Anthony Albanese’s government negotiated with Nauru to act as a “third-country destination” for such individuals, allowing Australia to remove them from its jurisdiction without breaching international law against indefinite detention.
The Deal and Its Costs
Under the confidential memorandum of understanding, Australia will pay A$408 million once the first deportees arrive, followed by annual payments of about A$70 million to support the cohort’s resettlement and ongoing management on the island. If maintained for the full 30-year term, the total cost would exceed A$2.5 billion, or more than A$7 million per person.
The government insists the policy protects national security while upholding Australia’s legal obligations. Home Affairs Minister Clare O’Neil said the deal “provides a lawful, humane and practical way to manage individuals who cannot stay in Australia but cannot be safely returned to their countries of origin.”
Human Rights and Transparency Concerns
Human rights organisations have condemned the move, describing it as an attempt to outsource Australia’s legal responsibilities.
“Shipping people—many of whom have already endured years of detention—to a small island nation with limited infrastructure is both unethical and deeply opaque,” said Human Rights Watch’s Australia director, Daniela Gavshon. “It risks replicating the very harms that Australia’s offshore detention regime was once criticised for.”
Critics have also highlighted the lack of transparency surrounding the MOU, which has not been publicly released. The government has confirmed that new legislation will allow it to cancel visas and remove affected individuals without providing procedural fairness, a move rights groups say undermines due process.
Uncertain Future for Deportees
Nauru, with a population of just 12,000, has hosted Australian immigration facilities for over a decade under previous asylum-processing deals. However, it remains unclear how the new arrivals will be housed or whether they will have work rights, access to medical care, or freedom of movement.
The government has declined to confirm how many people will be transferred or over what time frame, citing “operational sensitivity.”
For now, the first transfer marks the beginning of what could become one of the most expensive and controversial migration policies in Australia’s history—one that raises renewed questions about the ethics and legality of paying other nations to accept unwanted residents.