Foreign Minister Julie Bishop says a new deal to return asylum seekers to Iran is justified because many are economic migrants.
Ms Bishop on Monday confirmed reports that a senior delegation from Iran had met Australian officials last week to discuss an agreement to return Iranians who have failed to secure asylum.
She said 13,200 of the 52,000 asylum seekers who tried to come to Australia under Labor's watch were from Iran, most of whom had flown to Indonesia before destroying their travel documents and hiring people smugglers.
She quoted former foreign minister Bob Carr as saying they were not fleeing persecution, but were seeking "economic improvement".
"One of the key outcomes from my visit to Iran was to seek from the Iranian government the ability to return those who came to Australia under Labor's watch," Ms Bishop told parliament on Monday.
"A delegation of senior Iranians have come to Australia to consider the recommendations."
Ms Bishop's parliamentary secretary Steven Ciobo said Australia had sought assurances from Iran that returned people would be protected.
"Let's not lose sight of the fact that these are people who have been found not to have genuine claims ... people who have travelled to Australia with the intention of securing an economic outcome for themselves, not to be safe from persecution," he told Sky News.
The federal opposition says it's concerning that Australia might trade off travel advisories in exchange for the returns agreement.
Labor MP Michael Danby went further in an opinion piece in The Australian on Monday saying the possible opening of Iranian consulates in Sydney and Melbourne was "dangerous".
"It could exacerbate inter-Islamic community tensions, just as happened with the opening of Libyan and Syrian consulates in Australia under the Liberals in the 1980s and 90s," he wrote.
"These were closed down later for security reasons."
The US State Department had noted Iran's involvement with terrorism, Mr Danby said.
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