A parliamentary committee will investigate whether the Abbott government paid cash to people smugglers to turn asylum seeker boats around.
Australian Greens senator Sarah Hanson-Young won Labor and some crossbench support to refer to a Senate committee reports people smugglers had been paid on the high seas.
The committee will only investigate payments made after September 2013, covering the Abbott government's term.
Senator Hanson-Young sought the inquiry after the government failed to respond to a Senate request to produce documents relating to any payments - which will also be part of the investigation.
The Legal and Constitutional Affairs References Committee will also look into the legality of any payments under international and Australian law and the extent to which "such bribes" encourage people-smuggling activities.
The committee will report by September 15.
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