Australia's government may spend approximately $2.5 billion over 30 years to resettle up to 354 former immigration detainees on Nauru. This figure comes after officials confirmed that multimillion-dollar payments would continue for three decades if the agreement remains in effect. Last week, the Albanese government finalized a deal with Nauru to accept members of the NZYQ cohort, who were released following a significant High Court ruling. The initial cost of the agreement is set at $408 million, followed by annual payments of $70 million.

Labor has not disclosed further details about the agreement, which was signed by Home Affairs Minister Tony Burke during an unannounced visit to Nauru. However, officials from the Department of Home Affairs confirmed during a Senate committee meeting that the $70 million payments would persist for the full 30 years if a substantial number of individuals from the cohort are successfully resettled. This could result in a total lifetime cost of around $2.5 billion, translating to over $7 million per person if all members of the cohort are relocated to Nauru.

Prime Minister Anthony Albanese has faced scrutiny for not revealing the total cost of the deal, stating, "there’s complexities and detail here, including the number of people who go." Officials also indicated that there is no assurance Nauru will grant visas to all members of the cohort, many of whom have histories of violent offenses. The memorandum of understanding does not specify a minimum number of individuals that Nauru must accept.

Under the terms of the deal, most of the initial payment will be placed into a trust managed jointly by Nauru and Australia. Additionally, $20 million will be allocated for direct payments to assist Nauru in managing the cohort, but this amount will only be disbursed once the first deportee arrives on the island. Clare Sharp, head of immigration at the Department of Home Affairs, noted that discussions regarding the financial arrangements are ongoing, but the annual payment is expected to be around $70 million.

The annual payment will begin in the second year of the agreement and will be divided between the trust and direct payments to Nauru, depending on how many individuals from the cohort receive visas to live on the island. Sharp explained, "If there are six people on Nauru, the majority of that payment goes into trust and sits in the trust, and should the agreement be frustrated and it never grows and it never delivers, the trust could be clawed back."

For the duration of the agreement, Nauru will have access to the annual interest generated by the trust but will not be able to access the principal. If the agreement is terminated, the trust funds will be returned to Australia. Sharp added that the specific number of individuals Nauru would need to accept to receive the full financial benefits of the arrangement has not yet been determined.

Independent senator David Pocock expressed concern over the total financial commitment to Nauru, stating, "This is an extraordinary amount of money."

The Senate committee also questioned officials about a proposed bill aimed at enhancing the government's deportation powers. This legislation seeks to eliminate the requirement for procedural fairness for non-citizens facing removal to a third country. Critics, including human rights advocates and members of the opposition, have raised alarms about the potential erosion of essential checks and balances.

Members of the NZYQ cohort were previously held in Australian immigration detention until the High Court ruled in 2023 that indefinite detention without reasonable prospects of removal was unlawful. Many individuals in this group have served sentences for violent offenses. Earlier this year, the government reached an interim agreement with Nauru to resettle three members of the cohort, but legal challenges have delayed their deportation.