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Isn't that what is happening right now? Genuine refugees are in UN run refugee camps throughout the world and Australia takes a significant number of these processed refugees in each year, giving them the rights to full Australian citizenship. We obviously can't take every refugee as we would be overwhelmed, but we do our share (perhaps we could increase the intake a bit). Those trying to enter by other means (boat arrivals) are rejected and will not ever be given settlement rights because they jumped the queue so to speak.
I haven't look but I wouldn't imagine there's a camp nearby but they decided to "jump the queue", get on a boat to get here first.
Refugee camps are usually near "active" areas... near borders of warring states. From scanning the headlines over the years, the ones that arrive recently by boat are from Sri Lanka, Afghanistan, Iraq/Iran... So if your country is not currently at war but you're persecuted nonetheless - and yes this does happen; or battle is raging but the camp is across the country... so it's often safest to get on a boat to escape than to travel overland across borders - less risk of being captured and imprisoned.
A quick look at wikipedia and found that under Rudd, of some 1600 refugees on Xmas Island, only 44 were found to not be genuine refugees.
It's not hard to imagine that if you're thinking of fleeing to Australia... given the news of death and detention, if you're not genuine than chances are you'd stay put or go elsewhere. The ones that does try to get here most likely do so because they believe that they do have a genuine case, that those in detention are so because they are not genuine.
Anyway, I don't know what the solution is... but making examples out of those that almost made it here... that's too much like mob justice.