Australia to pay Nauru $1.62 billion for deportee resettlement deal
Australia has struck a $1.62 billion (A$2.5 billion) agreement with the Pacific island nation of Nauru to house deported non-citizens over the next 30 years, officials confirmed on Wednesday.
Under the deal, Australia will make an upfront payment of A$400 million to establish an endowment fund, followed by annual payments of A$70 million. Accommodation for the first deportees has already been prepared. Canberra will also have the right to reclaim funds if Nauru accepts fewer deportees than expected, News.Az reports, citing Reuters.
The agreement comes as Prime Minister Anthony Albanese’s government moves to pass a new law easing the deportation of non-citizens to third countries. The legislation, backed by the opposition Liberal Party, would remove certain procedural safeguards and limit court appeals.
Human rights groups have sharply criticised the plan, warning it amounts to “dumping” refugees in small island states and likening it to U.S. policies under President Donald Trump. The Law Council of Australia has also raised concerns over healthcare access for deportees in Nauru.
Nauru, a tiny island nation with just 12,000 residents and a land area of 21 square kilometres, is heavily reliant on foreign aid. In 2024, two-thirds of its revenue came from hosting an Australian-funded asylum seeker processing centre. The country also faces a looming A$43 million debt repayment to Taiwan in 2025 after switching diplomatic ties to Beijing.
The new resettlement scheme differs from Australia’s offshore asylum processing policy. It targets individuals whose visas were cancelled on character grounds or after criminal convictions, and who cannot return to countries such as Iran, Myanmar, and Iraq due to risks of persecution.
Australia’s High Court ruled last year that indefinite immigration detention was unlawful, leading to the release of around 350 non-citizens, some of whom are now subject to electronic monitoring. On Wednesday, a 65-year-old Iraqi man lost his High Court appeal against deportation to Nauru, clearing the way for the first transfers under the new scheme.
Officials said applications for Nauru visas will be submitted “on a rolling basis” and, once approved, individuals will be detained in Australia before deportation.
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