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They are arguably violating article 33 of the UN refugee convention (of which Australia is a signatory). As I mentioned before one reason for all the secrecy is the Government probably thinks there's a good chance they would lose if this went to court (the High Court has ruled against the Government on issues related to refugees quite a lot lately).
The problem is 'arguably' is in itself arguable, therefore pretty unconvincing.
The real problem is, the flood of dubious asylum seekers, has caused a distrust of genuine refugees.