The Guardian's release of thousands of leaked documents showing sexual abuse, self harm and other allegations at Nauru's detention centre has prompted Labor to act.
Immigration Minister Peter Dutton has said the most serious claims will be examined by his department but it is up to Nauru to investigate the cases.
The parliamentary inquiry would need the support of the Greens and crossbench senators when Parliament resumes at the end of the month.
Opposition Leader Bill Shorten says the situation in Nauru requires the attention of parliament.
"I support regional processing but I don't believe you should have regional processing at the price of indefinite detention. The federal government needs to stop brushing these matters under the carpet. If there's nothing wrong happening here then they shouldn't worry about scrutiny.. And I also think the federal government needs to redouble its efforts for regional resettlement. I notice Tony Abbott has come out and done a bit of a mea culpa, an apology and said he should have backed Labor's regional plans back in 2011 and 2012. "
An Iranian asylum seeker in Australia's detention centre on Nauru has made an emotional plea to be evacuated to Australia.
The woman claims she has been molested by security staff and assaulted by local police but that no action has been taken to protect her.
Australian medical authorities are also warning the woman is at extreme risk of suicide.
In a statement to S-B-S, the Department of Immigration says all allegations have been investigated and are not substantiated.
It was the individual is receiving care commensurate with her needs.
Her lawyer, George Newhouse, says his client is extremely unwell.
"She's vulnerable to male predation. She's complained numerous times about sexual assaults. I'm extremely worried and so are other people who advocate for her. I know what you know, which is her version of events, but she has been consistent. .