- Australia’s offshore processing costs reached nine point six million dollars per person for asylum seekers on Nauru.
- Asylum seekers receive only two hundred sixty dollars fortnightly, leaving ninety-nine percent unable to afford sufficient food.
- High import costs on Nauru make basic groceries unaffordable, leading to widespread hunger and significant weight loss.
Australia allocated $971.6 million to offshore management in 2025–26, producing a rough cost of $9.6 million per person for about 100 asylum seekers on Nauru. Yet people living in the community receive only $260 a fortnight and say they cannot afford enough food.
The figure covers an entire detention-and-processing system, not grocery payments. Contractors, security, medical services, administration and fees paid to the Nauruan government absorb most of the money.
The asylum seekers generally cannot work. They must rely on the allowance, which rose from $230 to $260 in December 2025.
A survey of 78 people found that 99% could not buy enough food with the payment. Sixty-eight percent rarely or never had access to fresh fruit, vegetables and meat.
Jana Favero, deputy CEO of the Asylum Seeker Resource Centre, said the findings exposed a gap between government spending and daily living conditions.
"It is absolutely shameful that the Australian government is spending a billion dollars a year in offshore processing and people are going hungry. They are telling us they don't have enough to eat, that the healthcare isn't sufficient. it’s their truth and their experience that we are exposing."
The ASRC interviewed 78 of the 91 people in community accommodation for its Hungry for Freedom report. The survey also found that 82% lacked easy access to free, clean drinking water, forcing some people to choose between buying water and food.
The $971.6 million pays for infrastructure, contracts and services
The Department of Home Affairs said the support arrangement is intended to encourage independence and protect residents’ rights.
"Support payments are designed to promote self-sufficiency. individuals are treated with respect and dignity and in accordance with human rights standards."
The allocation works out to about $26,000 per day for each person, based on approximately 101 people on the island. The personal payment averages about $18.57 per day.
The system has also cost more than $14.35 billion since offshore processing returned in 2012. Its cost has remained high even as the number of people there fell sharply.
MTC Australia received $791.2 million over five years to operate the processing centre. International Health and Medical Services received $106.5 million over three years for medical care.
The spending therefore does not flow directly to the people receiving the allowance. It funds the machinery around them.
Imported groceries leave the allowance short of basic needs
More than 90% of food on the remote island is imported. Prices reflect that dependence.
| Item | Reported price |
|---|---|
| Grapes | $20 per bag |
| Red onions | $17.50 per kilogram |
| Some vegetables | About $18 per kilogram |
| Internet | $100 per month |
Internet access can be needed to communicate with legal aid. Food, water, phone credit, internet access and other essentials all compete for the same fortnightly payment.
The survey recorded more than hunger. People reported skipping meals and losing weight, including one person who lost 16kg. Chronic fatigue and worsening mental health were also reported.
An asylum seeker identified as “George” described eating less than a full meal.
"I often skip meals. I skip meals in the morning. Today, I take half of a bag of instant noodles for lunch."
Long-term agreements keep the offshore system running
The spending sits within a broader set of agreements between the two governments. A treaty signed in December 2024 entered into force on September 19, 2025.
Under that treaty, the island receives $100 million in budget support and $40 million for security over five years. The payments are separate from the allowance given to people living in community accommodation.
Tony Burke, the minister for Home Affairs, has previously defended offshore processing as necessary for border security. His department is also overseeing arrangements involving people transferred under a separate migration agreement.
That agreement concerns the NZYQ cohort, after a 2023 High Court ruling. Under the arrangement, some non-citizens with cancelled visas can be sent to the island and granted 30-year visas there, avoiding indefinite detention laws in Australia.
The policy has drawn fresh legal action. Human rights advocates launched challenges on July 20, citing failures to provide basic necessities including food and water.
Annabel Hennessy, an Australia researcher at Human Rights Watch, described the financial model in March 2026 as an effort to shift responsibility to poorer countries.
"Australia has spent billions of dollars trying to offload its responsibilities onto poorer countries instead of upholding its international obligations."
The government’s 2025–26 allocation now stands against a population of roughly 100 people, while the allowance remains tied to a place where imported groceries and basic services consume much of a household budget.
The next legal challenges will test whether that arrangement can continue while people report skipping meals, buying water instead of food and relying on a payment of $260 a fortnight.
