The blue and yellow Wiggles have become the latest voices to call for children to be taken off Nauru, as pressure mounts on the government to resettle refugees in New Zealand.

Anthony Field and Emma Watkins released a video on Tuesday urging politicians to "work together and get all the kids off Nauru [so] we could really celebrate Universal Children's Day" on November 20.

"Some of them were born there. They've spent their whole lives trapped and without hope of a better future," Ms Watkins says.

While Mr Field says, "we sing and dance with millions of children all over the world who have those opportunities – but there are more than 100 children trapped in detention on Nauru who don't have this freedom".

It comes as the Coalition and Labor try to break a stalemate over the hundreds of refugees still on Nauru and Manus, discussing a deal that will send 150 refugees held in offshore detention to New Zealand.

The government maintains it will only support the deal if parliament approves its so-called 'lifetime ban' legislation, which would ban the refugees from ever entering Australia, even as visitors years later.

On Tuesday, Prime Minister Scott Morrison dismissed any idea of "horsetrading" around the deal.

Earlier Tuesday, Labor announced it was willing to compromise and approve the legislation with "amendments".

Shadow immigration minister Shayne Neumann said the laws should only apply to the New Zealand cohort, rather than all refugees, and could be applied by restricting their access to the special 444 visa that gives Kiwis easy access to Australia.

But the Refugee Action Coalition is calling on Labor to "completely reject the Liberals' lifetime ban" saying it turns the refugees into "second-class citizens".

"This is no justification for accepting any Liberal conditions on New Zealand offer to resettle 150 refugees," the group said in a statement Tuesday.

"Labor and the Greens have rightly always opposed the lifetime ban, saying that refugees should be able to go to New Zealand without preconditions. They should continue to oppose the lifetime ban. Just amending the legislation so that the ban would only apply to refugees sent to New Zealand is not good enough."

"There is every reason to believe that a resolution to parliament to accept the New Zealand resettlement offer, immediately and without condition, would be passed with the support of dissident Liberal MPs."

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'Families belong together'

Director of advocacy and campaigns at the Asylum Seeker Resource Centre Jana Favero told SBS News her group was "very concerned" about the prospect of a lifetime ban for the refugees.

Ms Favero said there are some families who are currently split between Manus, Nauru and Australia, "so a lifetime ban bill would mean these families remain separated".

"And as a human rights group, we absolutely believe in family unity. Families belong together."

Ms Favero also said that it would mean Australia would be "dictating terms to other countries about the movement of their people which is something we don't think [this country] should do."

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However, she did welcome general progress on the New Zealand deal as "there is an emergency medical crisis [on Nauru]" and the deal "would mean 150 people whose lives would be safe, who would have a home".

"For months conditions have been deteriorating... It's a miracle a child has not yet died [on Nauru]," she said.

' We can, and must, do more'

Oxfam Australia also spoke out on Tuesday.

"While a decision to allow their transfer to New Zealand is a step in the right direction towards ensuring the lives of these children and their families are protected, Australia is shirking its responsibilities," head of public policy and advocacy Rachel Ball said.

"We are a nation with a strong economy, capacity to resettle a large number of people and a proven history of managing resettlement effectively," she said.

"Much like the United States resettlement deal, the proposed New Zealand transfer doesn't end the dire situation on Nauru. We can, and must, do more."

Border Force said 652 people, including 52 children and 107 families, remain on Nauru while 626 men are on Manus Island in Papua New Guinea. The vast majority on both islands have been judged to be genuine refugees.

Refugee Action Coalition spokesperson Ian Rintoul said there is still a long way to go.

"New Zealand is only offering to take 150. Hundreds are in limbo, as the US deal comes to an end," he said.

"Like the Liberals, Labor has no solution to resettle over 1000 refugees and asylum seekers who are still in limbo after five years in offshore detention. To give refugees and asylum seekers the freedom and protection they need, they will have to be brought to Australia."

The offshore policy is designed to deter people embarking on treacherous sea journeys, but the United Nations and other rights groups have criticised the camps' conditions and long detention periods.

- Additional reporting: James Elton-Pym