The first of a new wave of Syrian refugees from camps in Jordan, Lebanon and Turkey will be permanently resettled in Australia by Christmas.
Prime Minister Tony Abbott on Wednesday announced Australia would make a one-off boost to its current 13,750 refugee and humanitarian intake by 12,000 permanent places over the rest of this financial year.
On top of the $700 million four-year cost of the immigration program, Australia will also provide $44 million to provide food, blankets and other support to about 240,000 people in UN and other camps.
"When we see a problem we roll up our sleeves and do what we can to help," Mr Abbott told parliament.
"That is the Australian way."
The prime minister has written to state and territory leaders seeking their support to provide health and education services to the resettled people.
Community groups will also play a key support role.
The focus of the program will be women, children and families from persecuted ethnic and religious minorities - mostly drawn from camps in Jordan, Lebanon and Turkey but possibly also Egypt.
A senior government source said the first people could be expected by Christmas after a series of health, security and other checks.
In Jordan alone there are 630,000 people registered with the United Nations High Commission for Refugees.
The UNHCR over the next few weeks will look at its lists and provide a central air traffic control-type role as people are processed.
A senior government source said unaccompanied minors had not been ruled out, but are usually "quite complex" cases.
The move was widely welcomed.
"It is an important first step and shows to the world that Australia is willing to support those who are in great need," said Refugee Council of Australia president Phil Glendenning.
NSW Premier Mike Baird said it was a "bold and generous decision".
"People have united behind the simple idea that our boundless plains are here to be shared, especially with those that are in desperate need," he said.
Labor leader Bill Shorten said he welcomed the fact that Mr Abbott had changed his mind, given the prime minister's previous statement that the intake would not be raised above its existing level.
"At last, Tony Abbott has recognised that Australia has a role to play in dealing with this significant humanitarian crisis that has seen the biggest number of displaced people since the Second World War," he said.
Mr Shorten said the places should be offered on a needs basis "without qualification or discrimination".
Some coalition MPs have suggested that only persecuted Christian minorities should be given protection.
The $44 million for humanitarian aid will come from the Department of Foreign Affairs and Trade's existing budget for emergencies and natural disasters.
