A boat carrying 32 asylum seekers intercepted last night will be the first to be processed offshore under a new Commonwealth policy.
HMAS Ararat intercepted the boat off Scott Reef, north of Broome, in the Timor Sea about midnight.
Those on board will be taken to Christmas Island for identity checks before being moved to a third country, but Immigration Minister Chris Bowen would not say what country that is.
"The Australian policy is very clear, my message to people smugglers and asylum seekers is very clear: do not come by boat," Mr Bowen said.
"It's well known we've been in discussions with Papua New Guinea . It's well known we are in discussions across the region.
"We have an agreement to enter into a bilateral arrangement with Malaysia .
"I am not going to flag which country these people will be sent to, but they will be held at Christmas Island , pending removal to a third country."
The arrival comes just a week after the Government announced a deal with Malaysia to send 800 asylum seekers there for processing, in return for Australia accepting 4,000 refugees who have had their claims processed in Malaysia .
Mr Bowen indicated Malaysia would have a say in whether or not it received some of the latest arrivals.
"We are in discussions with Malaysia . Those discussions are well advanced," he said.
"About the final details of the arrangement, the principals are very clear.
"Of course Malaysia would want to be involved in the processing of people and in the transfer of people. Of course, they would, and that is perfectly acceptable and appropriate."
The Malaysia deal is yet to be formalised and comes after East Timor rejected Australia 's proposal to establish a regional immigration processing centre in the country.
Opposition immigration spokesman Scott Morrison says the latest boat arrival shows people smugglers are calling the Government's bluff.
"Labor needs to understand they can't spin the boats away they actually have to have measures in place," he said.
"The Malaysian deal has not been confirmed and yet we have the Government making it up on the run now.
"You need to have a deal in place, that's what they said only a week ago, and within a week it's already starting to unravel."
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