Australian Federal Government signs refugee deal with Malaysia

Government now says that those more than 500 claims for asylum will be processed in Australia.

Under the controversial plan, Malaysia will have veto powers to reject asylum seekers if it doesn’t approve of them.

Australia will pay for transfers, as well as health and education costs for those asylum seekers once they are in Malaysia.

The cost of the plan has previously been put at $292 million.

The Government has called the agreement “groundbreaking” and a “true burden-sharing arrangement” that is a step towards a regional plan to stop people smugglers.

In a statement, Prime Minister Julia Gillard and Immigration Minister Chris Bowen said the agreement would see up to 800 asylum seekers who arrive illegally by boat sent to Malaysia.

In return, Australia will accept another 4000 extra processed refugees from Malaysia over four years.

“Under the arrangement signed today, those who arrived in Australia before 25 July will not be transferred to Malaysia,” the statement says.

“Consequently, the people who arrived prior to today’s announcement, currently being detained on Christmas Island, will now be processed in Australia.”

Mr Bowen and Malaysian Home Affairs Minister Dato' Seri Hishammuddin bin Tun Hussein signed the agreement at a ceremony in Kuala Lumpur.

Ms Gillard and Mr Bowen said the arrangement “reaffirms Malaysia’s commitment that transferees will be treated with dignity and respect in accordance with human rights standards”.

Asylum claims will be considered by the United Nations High Commissioner for Refugees.

The Government says the United Nations High Commissioner for Refugees has been closely consulted on the transfer arrangement.

Asylum seekers who arrived in Australia before today will not be transferred to Malaysia.

They will continue to be processed on Christmas Island.

Ms Gillard said the deal was a "true burden-sharing" arrangement and that the deal would "smash the people smugglers' business model."

The Prime Minister issued a stern warning to people smugglers who "prey on the desperation of people" to give up now.

She also had a message for asylum seekers considering making the boat trip to Australia.

"Do not do that in the false hope that you will be able to have your claim processed in Australia."

In Kuala Lumpur, Mr Bowen said the deal "sends a very clear signal that Malaysia and Australia are serious about stopping people smuggling".

"As Immigration Minister I hope I never get another call telling me that people have drowned trying to make it to Australia and that children as young as two-months old have drowned trying to come to Australia," he said following the signing.

"This arrangement we've signed today is very clear indication of our commitment."

"Today is not the end of the road. In many senses today is just the beginning. The people who doubted our resolve to get this arrangement this far will test our resolve further. People smugglers will test our resolve further.