The group is believed to have left Malaysia on a yacht bound for New Zealand last month, but they were picked up by Australian authorities and say they are members of China's persecuted Falun Gong spiritual group.
They have been given short-term visas in Darwin and are being encouraged to stay in Australia rather than make a dangerous boat journey to New Zealand.
Opposition immigration spokesman Scott Morrison says the issue highlights there are occasions now where refugees engage in country shopping.
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