Labour leader Andrew Little says Australia's plans for refugees are "pretty drastic in terms of the erosion of human rights".

New Zealand should use "every point of pressure we can" to ensure Australia resettles refugees in its detention centres humanely, Labour leader Andrew Little says.

Little has joined Prime Minister John Key in criticising our trans-Tasman neighbours over their plans to deal with refugees held in offshore detention centres.

At the weekend, Australian Prime Minister Malcolm Turnbull unveiled plans to stop those who tried to arrive in Australia by boat from ever coming to the country.

ROSS GIBLIN/Dominion Post New Zealand has no intention of having second-class citizens.

In 2013, New Zealand offered to take up to 150 refugees from centres on Nauru and Manus Island, an offer Australia initially rejected, due in part to fears the country could provide a backdoor into Australia via citizenship.

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However, there has been speculation across the Tasman a final deal is close following the policy announcement, and after secret talks with one or more foreign governments.

On Monday, Key downplayed talk of a deal, while saying the Government would not accept any move to create "different classes of New Zealand citizens" by barring refugees who settled here from ever returning to Australia.

Little was critical of the proposed ban, saying, "it's pretty drastic in terms of the erosion of human rights for people whose rights are already under threat".

Freedom of movement was "an inherent human right" for both countries, and banning any refugees who moved to New Zealand from entering Australia was not acceptable, he said.

"A lot of those people, they are fleeing from their countries in a state of fear and terror, and we shouldn't be participating with others to make life worse for them."

'USE EVERY POINT OF PRESSURE'

New Zealand should restate its offer and use "every point of pressure that we can" to encourage Australia to make a refugee deal, holding the country to account if it did not, Little said.

"We are regarded around the world as champions of humanitarianism, and we should be standing on our reputation...

"We will never resolve the issues for Australia, but we should put up our hand and say, 'We are prepared to assist because we have the ability to do so'."

Key again confirmed there had been no new discussions with Australia about a refugee deal, despite rumours across the ditch.