The Labour-led Government's offer to take 150 asylum seekers is being blamed for an escalation in people-smuggling operations with New Zealand being marketed as a "back door" into Australia.
The Australian is reporting fears the latest Manus Island resettlement offer has sparked an increase in "chatter" in recent months with New Zealand mentioned as the final destination.
Last month an Australian naval patrol intercepted a boatload of 29 Sri Lankans off the coast of Western Australia. Those on board told Australian authorities they were bound for New Zealand.
The Australian said Sri Lankan authorities disrupted two people-smuggling ventures in their waters late last year in which the asylum seekers were also headed for New Zealand.
The newspaper quoted a source saying there was evidence the recent spike in people-smuggling activity marketing New Zealand had followed the Ardern government's offer to take asylum-seekers from the Australian offshore detention centres.