Australia is facing rising anti-immigration sentiment, similar to trends seen in the U.S. and Europe. This week, neo-Nazi groups openly marched in Australia, prompting concerns about the country’s migration policies. In response, the Australian government has announced a significant financial arrangement with Nauru, amounting to $408 million, to accept a group of former immigration detainees known as the NZYQ cohort.

The NZYQ cohort includes individuals who have served time for serious crimes. The deal with Nauru also includes an ongoing payment of $70 million per year. However, details about the arrangement remain limited. Questions about the purpose of the funds, the number of individuals to be relocated, and the overall transparency of the deal have not been adequately addressed by officials. Prime Minister Anthony Albanese has stated, "We have arrangements with governments," echoing past responses from former leaders regarding immigration matters.

Labor MPs have expressed little opposition to the deal, recognizing the community's lack of support for the NZYQ cohort, who were released from detention following a High Court ruling in November 2023. Some of these individuals have re-offended, creating political challenges for the government. One Labor backbencher, speaking anonymously, noted, "Sometimes these tough decisions have to be taken to prevent something even worse happening."

The financial commitment to Nauru is viewed by some within the government as a necessary step to maintain public support for Australia’s migration program. A cabinet member remarked that the payment is "absolutely about that social licence," referencing the political consequences of immigration issues in other countries, such as the rise of Donald Trump in the U.S. and Nigel Farage in the U.K.

The government previously attempted to manage the NZYQ cohort through a new preventative detention regime, but this strategy was unsuccessful. The current approach, involving a substantial financial incentive to Nauru, is seen as a way to address the NZYQ issue and reduce tensions surrounding immigration.

Historically, the concept of the "Pacific Solution" was first implemented by former Prime Minister John Howard, who argued that strict border protection measures were essential for maintaining community support for migration. Albanese, who once opposed tougher border measures, now finds himself in a position where he is asking Nauru to accept individuals that Australia cannot accommodate.

Nauru, a small Pacific nation with a population of around 12,000, faces challenges in absorbing an unspecified number of deportees from Australia. The financial support from Australia is expected to assist in this process, but the long-term implications of this arrangement remain uncertain.