Prime Minister Tony Abbott insists Australian authorities have acted lawfully in efforts to stop asylum seeker boats.
Indonesian vice president Jusuf Kalla says if Australia paid people smugglers to return asylum seekers to his country, that would amount to bribery and possibly even people trafficking.
Amid reports Australian spies may have made the payments, Mr Abbott told reporters in Canberra he was "absolutely confident" his ministers and agencies had acted within the law at all times.
Independent senator John Madigan said in light of the "whatever it takes" mantra there shouldn't be much surprise about the government's actions.
Australia did need to have secure borders but there had to be humanity in the policies as well, he told ABC radio.
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"We've got talk about it being legal, but is it ethical?"
