Prime Minister Kevin Rudd has signed a regional deal to process and resettle refugees in Papua New Guinea.
He says from today asylum seekers who come here by boat without a visa will never be settled in Australia.
Mr Rudd says the deal with Papua New Guinea would "combat the scourge of people smuggling".
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"As of today asylum seekers who come here by boat without a visa will never be settled in Australia," Mr Rudd said.
"...I understand this is a very hard-line decision."
Under the plan, asylum seekers will be processed and resettled on Manus Island.
There is no cap on the number of people who can be transferred to Papua New Guinea.
Mr Rudd says the plan will be costly and the implementation of the agreement difficult.
Peter O'Neill says this objective of this policy is to stop the boats. He says he hopes no-one will be coming to Manus Island.
