Parliamentary Inquiry Into Offshore Processing
On 27 November 2025, the Senate referred an inquiry into offshore processing and resettlement to the Legal and Constitutional Affairs References Committee. The inquiry follows claims of corruption, misuse of government funds and criminal infiltration within the government’s contracts relating to offshore processing. This page outlines the terms of reference of the parliamentary inquiry, and how it came about.
Background
Australia started using offshore processing for asylum seekers who arrived by boat in 2001. The practice temporarily ceased in 2008 but resumed in 2012, with processing centres on Nauru and Manus Island reopening.
Offshore processing has involved asylum seekers spending lengthy and indefinite periods of time in detention centres outside of Australia, while awaiting outcomes on their applications for protection by the Australian government.
The system involves significant human rights concerns and has been widely condemned by the international community and by many segments of the Australian community.
The policy is designed as a deterrent, aiming to discourage people from attempting to enter Australia by sea without a visa, by making a dangerous sea journey. It has been criticised for its cruelty, costliness, and for its perceived breach of Australia’s obligations under the Refugee Convention 1951.
MOU with Nauru
In 2025, the Australian government entered into a temporary arrangement with the government of Nauru.
Under the arrangement, Australia agreed to pay up to $2.5 billion in exchange for the small country’s agreement to accept a number of non-citizens (formerly detainees) as long-term residents.
The arrangement has become the subject of a High Court challenge, initiated by a man seeking to prevent his deportation to Nauru, arguing that the decision to deport him to a third country where he is likely to be unsafe is unreasonable.
There are widespread concerns about the deportation of non-citizens to Nauru, which is not a signatory to the Refugee Convention. Individuals who are sent there may be forcibly returned to their countries of origin where they will be at risk of persecution. There are also concerns that they will be at risk of personal violence and inadequate healthcare in Nauru, which is one of the poorest countries in the world.
60 Minutes program
The television program 60 Minutes last month add an episode that contained various claims about Australia’s agreement with the government of Nauru.
The show detailed claims that the agreement involved:
- corrupt processes for contract procurement
- the renewal of contracts that were no longer fit for purpose
- the signing of contracts with inappropriate parties, including one owned by the head of Finks, an outlaw motorbike gang
- payment for services that no longer existed
Following the episode’s airing, the Refugee Council of Australia and other organisations started calling for a parliamentary inquiry.
Terms of reference
The inquiry will have reference to offshore processing and resettlement arrangements with other countries since 2022, particularly:
- the agreement between the Australian government and the Nauru government for the resettlement of non-citizens, including
- The payments made by the Australian government to primary and secondary contractors
- The payments made by the Australian government to other third parties involved in offshore processing and resettlement
- the outcomes and effect of payments made to primary contractors and subcontractors involved in offshore processing and resettlement programs and other relevant third parties, and
- the integrity of arrangements made for the delivery of services and value money for Australian taxpayers; and
- any other matters.
The committee is now accepting submissions and will report by 1 June 2026.
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Fernanda Dahlstrom is a writer, editor and lawyer. She holds a Bachelor of Laws (Latrobe University), a Graduate Diploma in Legal Practice (College of Law), a Bachelor of Arts (The University of Melbourne) and a Master of Arts (Deakin University). Fernanda practised law for eight years, working in criminal law, child protection and domestic violence law in the Northern Territory, and in family law in Queensland.
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