Australia has cemented a controversial agreement with Nauru to resettle individuals who lack a legal right to remain in Australia, a deal involving hundreds of millions of dollars that has drawn immediate condemnation from human rights organizations.

Under the memorandum signed by Nauruan president David Adeang and backed by Australian prime minister Anthony Albanese, Australia will provide Nauru with an upfront payment of AU$408 million (approx. NZ$453 million) upon the arrival of the first group of deportees. This will be supplemented by annual payments of AU$70 million to support their long-term residence on the tiny Micronesian island.

The agreement is designed to address a legal quandary for the Australian government. It follows a landmark 2023 High Court decision that ruled against the indefinite detention of non-citizens if there was no real prospect of their removal to another country. This new arrangement provides a pathway for the long-term resettlement of these individuals, whom Australia is unable to deport to their countries of origin.

However, the policy has been met with fierce opposition. Human rights organizations and refugee advocates have raised alarms about potential abuses, pointing to a previous United Nations report that found "systematic violations" of the International Convention Against Torture connected to Australia's past offshore processing activities in Nauru. Critics fear the deal could enable mass deportations to occur without adequate notice or due process, placing vulnerable individuals at risk.

This resettlement plan is the latest development in a rapidly deepening bilateral relationship. In December 2024, the two nations signed a comprehensive security and economic treaty aimed at enhancing Nauru's stability. That agreement included AU$100 million in direct budget support over five years, AU$40 million for policing, and a provision granting Australia effective veto power over Nauru's security, banking, and telecommunications engagements with third-party nations, a move widely seen as an effort to counter growing Chinese influence in the Pacific.

A key component of that treaty was ensuring Nauru's economic resilience. As part of the pact, the Commonwealth Bank of Australia began operations on the island in 2025, taking over from Bendigo and Adelaide Bank to guarantee Nauru’s continued access to the international financial system.

While the security treaty strengthens strategic ties, the new deportation deal highlights the contentious side of the partnership. The arrangement effectively makes Nauru a long-term solution to Australia’s complex migration challenges, a role that continues to provoke ethical and legal scrutiny both domestically and on the world stage.