Australia will boost its refugee intake by more than 6,000 people per year under changes announced by Prime Minister Julia Gillard today.

The increase in the annual refugee quota from 13,750 to 20,000 people was one of the key planks of the expert panel report on asylum seeker policy handed to the Government earlier this month.

The Government expects the majority of the applications to continue to come from people fleeing Afghanistan and Sri Lanka.

Ms Gillard says it is the biggest increase to the humanitarian program in 30 years, and says it has been welcomed by other countries in the region.

Key points: Establish offshore processing facilities in Nauru and PNG as part of a "comprehensive regional network".

Establish offshore processing facilities in Nauru and PNG as part of a "comprehensive regional network". Pursue talks on the Malaysian solution but seek more reassurances about the treatment of people who are sent there.

Pursue talks on the Malaysian solution but seek more reassurances about the treatment of people who are sent there. Increase co-operation with Indonesia on joint surveillance, law enforcement, and search and rescue.

Increase co-operation with Indonesia on joint surveillance, law enforcement, and search and rescue. Increase Australia's humanitarian intake from 13,000 to 20,000 places a year, rising to 27,000 within five years.

Increase Australia's humanitarian intake from 13,000 to 20,000 places a year, rising to 27,000 within five years. Those who arrive by boat should not be eligible to sponsor family members to join them.

Those who arrive by boat should not be eligible to sponsor family members to join them. Consider turning back boats in the future but only if operational, safety and legal conditions are met.

Consider turning back boats in the future but only if operational, safety and legal conditions are met. Future policy should be driven by a "sense of humanity as well as fairness".

"This is important because we want to send two messages to asylum seekers," she said.

"Message number one, if you get on a boat, you are at risk of being transferred to Nauru or PNG. But message number two, if you stay where you are then there are more resettlement places available in Australia," she said.

Immigration Minister Chris Bowen said the increases would focus on taking more Afghan and Sri Lankan refugees, as well as Syrians and Iraqis who have fled to refugee camps in Jordan, Turkey, and Lebanon.

"In terms of the make-up of the 20,000, I know there will be interest where this will be targeted. Of course, key groups that will figure in the 20,000 are Afghans, whether they be in Pakistan, Iran or Indonesia," he said.

"Of course Sri Lankan refugees will continue to figure in our program, as will Burmese in Malaysia, Thailand and India.

"We'll continue to work with the UNHCR on key resettlement outcomes for people from the Congo, Eritreans and Ethiopians and other people in retracted situations in Africa."

Mr Bowen said the program was expected to cost around $150 million in the next financial year.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 5 minutes 19 seconds 5 m Government boosts refugee intake Download 2.4 MB

"At this stage the indications are that increasing the humanitarian program by an additional 6,250 places in 2012-13 will cost around $150 million, with a potential cost impact of $1.3 billion over the forward estimates," he said.

Asylum Seeker Resource Centre campaign coordinator Pamela Curr says the increase is long overdue.

However, she says it still does not justify the re-introduction of offshore processing of asylum seekers on Nauru and on Papua New Guinea's Manus Island.

"I visit detention centres, I see what it does to people. I see the harm and I know that those people who are going to be dragged off and dumped on Nauru will suffer irreparable harm," she said.

"It's very hard for me to say that's OK."

Sorry, this video has expired Government boosts humanitarian intake

The increase in the refugee intake came after the Federal Parliament last week voted to reinstate offshore processing, ending months of political paralysis on the issue.

The impasse was broken when the Opposition voted to support offshore processing in the Senate.

The Government has vowed to adopt all of the recommendations of the three-man panel, led by former Defence Force Chief Angus Houston.

The panel made 22 recommendations, including an immediate return to offshore processing in Nauru and Papua New Guinea.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 5 minutes 5 seconds 5 m Locals welcome refugee centre on Manus Island Download 2.3 MB

It also said Labor's plan to send asylum seekers to Malaysia was workable but said it needed more work to ensure human rights protections.

Today, the Government said Defence Force troops would begin setting up a temporary asylum seeker processing facility on Nauru within the next 24 hours.

The facility will be able to hold 500 asylum seekers by the end of September and about 120 troops will be involved in construction.

The expert panel also recommended stripping asylum seekers who come by boat of the right to sponsor their families to join them, but proposed doubling Australia's humanitarian refugee intake over the next five years as part of a 'carrot and stick' approach.

The Greens have opposed all attempts to reinstate offshore processing.

But Greens leader Christine Milne today said today's announcement was a major victory.

"It is the one thing that we actually know will save lives because it will give people hope that they have a safe pathway to get to Australia."