Two companies providing services for refugees detained on Papua New Guinea's Manus Island have been told by the Australian government to terminate their activities.
The government said Paladin Holdings and NKW Holdings were now commencing "the process to transition out".
The termination orders were delivered at the behest of the PNG government as it moves the remaining refugees on Manus to Port Moresby.
"Garrison, security and site management services on Manus Island will no longer be required... PNG has advised it is undertaking its own procurement activity for service delivery arrangements to support the management of the cohort in Port Moresby," the Australian Home Affairs department said.
It said it was "satisfied with the standard of services delivered" despite a report from the Australian Financial Review that Paladin was fined more than 1000 times for performance failures by the department.
The ABC reported that it understood Paladin would continue until the end of November, finishing a month earlier than originally expected.
The PNG immigration minister Petrus Thomas said the decision to cease foreign contracts and end regional processing on the island was "a key achievement" of the Marape government in the first 100 days in office.
"I am sure that the PNG community will agree that there is no reason services delivered to people in PNG cannot be done by a PNG company - and we are ensuring that is exactly what happens," Mr Thomas said.
Since 19 July 2013, 1523 men have been detained on Manus by Australia.
But "there are now only 64 persons in Manus," Mr Thomas said with "280 refugees" having departed to the US.
With deportations and voluntary repatriations, 460 men detained for six years on the island by Australia remain in PNG of which 343 are refugees and 117 are non-refugees, according to figures released by the Australia PNG Ministerial Forum.
"Under the newly announced arrangements to allow refugees to transfer to Port Moresby, they will be supported to either await their resettlement to the United States or supported to make the personal decisions regarding their future," Mr Thomas said.
"Importantly, refugees will have a visa and be free to move around the country and will be subject to all the same laws as every other person in the country.
"PNG is a welcoming, Christian country - that is assisting those in need. Through ICA (Immigration and Citizenship Authority), we will continue to promote the opportunity to settle here in PNG.
"Many of the refugees have skills and expertise that would allow them to make a valuable contribution to PNG.
"ICA will soon commence a tender process for a PNG led solution to service delivery to the remaining refugee cohort. This tender process will be for services to support refugees as they transition to settlement in the PNG community or other durable solutions outside of the country."