People arriving by boat to seek asylum will no longer be resettled in Australia but will go to Papua New Guinea, Prime Minister Kevin Rudd has announced.
The news came as Mr Rudd set out an overhaul of asylum policy ahead of a general election expected shortly.
Australia has seen a sharp rise in the number of asylum-seekers arriving by boat in recent months.
Mr Rudd said the “hard-line decision” was taken to ensure border security.
It was also aimed at dissuading people from making the dangerous journey to Australia by boat.
“Our country has had enough of people-smugglers exploiting asylum-seekers and seeing them drown on the high seas,” he said.
‘No chance’
The prime minister, who ousted Julia Gillard as Labor Party leader amid dismal polling figures last month, made the announcement in Brisbane flanked by the PNG Prime Minister Peter O’Neill.
“From now on, any asylum-seeker who arrives in Australia by boat will have no chance of being settled in Australia as a refugee,” Mr Rudd said.
Under the agreement, new arrivals will be sent to PNG for assessment and settled there if found to be a refugee.
To accommodate the new arrivals, an offshore processing centre in PNG’s Manus island will be significantly expanded to hold up to 3,000 people.
No cap has been placed on the number of people Australia can send to PNG, Mr Rudd said.
“The new arrangements will allow Australia to help more people who are genuinely in need and help prevent people smugglers from abusing our system.”
The rules would apply to all those arriving in Australia by boat from today, Immigration Minister Tony Burke said.
In return, Australia is to channel aid to PNG, including to a major regional hospital and the university sector.
Boat arrivals have soared in the past 18 months, with most asylum seekers coming from Iraq, Iran, Sri Lanka and Afghanistan.
They make their way to Indonesia and from there head to Christmas Island, the closest part of Australian territory to Java.
They travel in boats that are often over-crowded and poorly-maintained. Several have sunk in recent months, killing passengers.
Last year, the Australian government reintroduced a controversial policy under which people arriving by boat in Australia are sent to camps in Nauru and Papua New Guinea for processing.
But the policy – which has been strongly criticised for the conditions which asylum-seekers face at the camps – has so far failed to deter boat people, who are arriving in increasing numbers.
Asylum has become a key election issue in Australia and polls must be called before the end of November.
Agencies