Prime Minister Julia Gillard says the Federal Government has no choice but to process all asylum seekers onshore after it failed to get the numbers in Parliament to pass its Malaysian people swap deal.

Her announcement came after a meeting of the Labor Caucus this afternoon, which was held amid a high-stakes political stand-off with the Opposition.

The Government's proposed legislation would secure the future of offshore processing and allow it to send asylum seekers to Malaysia, but there is not enough support to get it through Parliament.

Ms Gillard told a news conference that the Government remained committed to its Malaysia policy as well as the mandatory detention of asylum seekers.

But she says Australia is at "a real risk" of more boat arrivals in light of "the Opposition's failure to act in the national interest".

Ms Gillard says the Government's proposed amendments will remain on the parliamentary notice paper until the Opposition is prepared to back them.

"The Leader of the Opposition is fond of saying that I should make various phone calls [to Nauru]," she said.

"If the Leader of the Opposition wants offshore processing for Australia... he needs to ring this Prime Minister and vote for the amendments.

"We are at real risk as a result of Mr Abbott's conduct of seeing more boats and that will put pressure on the detention network."

Immigration Minister Chris Bowen says bridging visas will be used to help deal with any increased number of arrivals.

"As you know, we currently have been moving families and children into the community. We will continue to do that," he said.

Bridging visas

He says bridging visas and community detention will be used to avoid overcrowding detention centres, and says there currently enough facilities to cater for a further 2,400 people.

"Bridging visas are currently used as a matter of course for people who have arrived irregularly by air," Mr Bowen said.

"They are used less frequently for people who arrive by boat.

"I'm indicating that you could imagine and expect that they will be used as part of the suite of measures to respond to pressures on the immigration detention network."

Ms Gillard says the Government will honour its commitment to Kuala Lumpur to take 4,000 refugees from Malaysia.

"We are intending to do that within our current humanitarian quota," she said.

The Prime Minister also urged the public to remember the plight of those who seek asylum in Australia.

"I'll always remember taking the phone call that advised me of the tragedy on the shore line of Christmas Island," she said.

"It's important for us to keep in our mind that this is not about laying blame on the people who get on those boats.

"Our focus has always been on smashing the people smugglers' business model."

Greens Senator Sarah Hanson-Young says it is important to keep as many people as possible out of detention.

"Long-term detention in remote locations ruins very vulnerable people and that's why I'm saying ... it's about making onshore work," she said.

Doomed to fail

Sorry, this video has expired Scott Morrison on the rejected deal

West Australian Nationals MP Tony Crook confirmed this morning that he would not vote for the Government's changes, meaning it was doomed to fail.

Despite Government promises that the bill would be debated today after an emergency cabinet meeting this morning, the amendments were not introduced.

This prompted the manager of Opposition business, Christopher Pyne, to accuse the Government of "cowardice".

Following Ms Gillard's announcement, Opposition immigration spokesman Scott Morrison says the situation is a mess and the Government should call an election.

"The Prime Minister of course should resign over this," he said. "The Minister for Immigration should of course resign over this.

"But what they should really do... and what the Prime Minister must do, is call an election. Australians are sick and tired of the failings of this Government."

'Bring it on'

During Question Time Opposition Leader Tony Abbott launched a last-minute bid to bring on a vote.

"Bring it on, bring it on," Mr Abbott said in Parliament to cheers from the Opposition and jeers from the Government benches.

"Bring on the legislation and bring on the legislation now."

Mr Abbott said Ms Gillard had been saying "for weeks" that the most important issue before Parliament was protecting Australia's borders through the Malaysian asylum swap deal.

"The Prime Minister knows she lacks the numbers in the Parliament to carry her legislation," he said.

"This Prime Minister is so desperate to cling to power, she is prepared to limp on without the policy that she said just days ago was vital to secure the security of this nation."

Ms Gillard said the Coalition's refusal to back the Government's legislation was hypocritical.

"They want to see more boats," she said.