The Federal Government has announced plans to open two more asylum seeker detention centres, but will also begin to release children and families into the community.

Australia's detention centres are all but full as the Government struggles to cope with the rising number of asylum seekers arriving by boat.

Making the announcement today, Prime Minister Julia Gillard said a new centre at Northam, north of Perth, will house around 1,500 men while another at Inverbrackie, in the Adelaide Hills, will be used for about 400 people.

If needed, the Government may also use the 11 Mile Antenna Farm outside Darwin and further expand the Melbourne immigration transit accommodation.

Ms Gillard says the new centres will mean the Government can close down other less suitable temporary accommodation, including on Christmas Island.

"I don't think it's the Australian way to have kids behind razor wire in the hope that will be a deterrent," she said.

The release of children into the community was foreshadowed on the weekend by Greens Senator Sarah Hanson-Young, who said she had been working with the Government to bring about the change.

But Ms Gillard today stressed the decision was the Government's alone.

"These measures have not been part of a deal with other parties as has been suggested," she said.

Immigration Minister Chris Bowen says after various consultations he has come to the decision that there is a better way to house families waiting to have their refugee applications approved.

"I think most people would also recognise that children are a special case and that there is a care of responsibility (sic) for children," he said.

Mr Bowen will use his ministerial powers to begin moving family groups into facilities run by church and charity groups.

Decisions on who to release will be made on a case-by-case basis between now and June next year.

But it will still be necessary to hold children and families in detention when they first arrive.

On September 17 the Government announced plans to make room for another 900 asylum seekers, with around 5,000 being held in various centres across the country.

Opposition Leader Tony Abbott seized on the Government's announcement to accuse it of failed border protection policies.

"How will opening more beds stop more boats?" he said.

"Why won't the Prime Minister pick up the phone to President of Nauru and reopen the detention centre that was established before with Australian taxpayers' money."