Published by Global Banking & Finance Review®
Posted on September 4, 2025
3 min readLast updated: January 22, 2026
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Australia's new law expedites deportation of non-citizens to Nauru, affecting refugees with criminal records. The deal involves significant funding but faces criticism.
By Kirsty Needham
SYDNEY (Reuters) -Australia on Thursday passed a law allowing faster deportation of non-citizens to third countries, paving the way to send hundreds of refugees denied visas because of criminal convictions to the tiny Pacific island of Nauru.
Under a 30-year deal signed with Nauru last Friday, Australia has agreed to pay A$2.5 billion ($1.62 billion) to host up to 350 deportees, with an upfront A$400 million to establish an endowment fund for the resettlement scheme, plus A$70 million annually.
On Nauru, population 12,000, business owners and community workers who spoke to Reuters by telephone said they had mixed feelings about several hundred people with criminal records being resettled on the 21 square km (eight square miles) island which has poor health facilities and infrastructure.
"It is an easy money grab," said one business owner, declining to give his name because of Nauru government's sensitivity to criticism over the deal. He hoped the money could build the economy.
"We've had all sorts of people come through here, from war-torn countries or poverty. Locals are robust," he added.
Another Nauruan said the hospital and other infrastructure on the island were in disrepair, and locals travelled overseas for health services when they could.
Despite Australia spending hundreds of millions of dollars on offshore processing of asylum seekers on Nauru over the past decade, the money had not benefited local people, she said.
There was "a mixed emotional reaction on social media", with people waiting to see who comes, said another businessman.
In Australia's parliament on Thursday, Greens Senator David Shoebridge criticised the new law, designed to speed up the deportation of people who had visas cancelled or refused, saying Prime Minister Anthony Albanese's centre-left government was treating Nauru "as a dumping ground".
"Nauru is a tiny island with almost no economy," he said.
The law removes procedural fairness for people being deported to a third country, limiting their ability to further appeal through the courts, the government said.
Human Rights Watch said the law allowed Australia to deport people without informing them of its plans, noting asylum seekers previously transferred to Nauru by Australia had suffered medical neglect.
Australia will apply to Nauru for visas for the deportees "on a rolling basis commencing fairly soon", a home affairs official said on Wednesday.
Nauru will decide which non-citizens it will accept, although the funds can be clawed back by Australia if the scheme doesn't meet expectations.
(Reporting by Kirsty Needham in Sydney)
The new law allows for faster deportation of non-citizens to third countries, particularly Nauru, for those whose visas have been canceled or refused.
Australia has agreed to pay A$2.5 billion ($1.62 billion) to Nauru to host up to 350 deportees, including an upfront A$400 million to establish an endowment fund.
Concerns have been raised regarding the resettlement of individuals with criminal records on Nauru, as well as the potential impact on local infrastructure and health services.
Human Rights Watch criticized the law for allowing Australia to deport individuals without informing them of the plans, highlighting past medical neglect of asylum seekers on Nauru.
Nauru has a population of approximately 12,000 people, and there are mixed feelings among locals about the arrival of deportees.
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