A group of prominent Australian business, arts and political figures today criticised the government's refugee policies as an expensive, overreaction to the small number of asylum seekers arriving here.

Filmmakers, politicians and business heavyweights are among 34 high-profile Australians who have endorsed a study by public interest think-tank the Centre for Policy Development critical of refugee responses.

"Australia's asylum and refugee policy is still sadly characterised by human tragedy, political opportunism, policy failure and great cost," the group, which includes former immigration minister Ian Macphee and writer Thomas Keneally said in a statement.

People seeking asylum in Australia had been the subject to "a toxic debate" which had polarised large sections of the community and paralysed politicians of most persuasions from engaging in constructive dialogue, it added.

"Misrepresentation is rife. We have reached a stalemate," it said.

Australia has long had a policy of mandatory detention for asylum seekers, sending most to the remote Christmas Island outpost for processing, and recently announced deals to ship hundreds to Malaysia and Papua New Guinea.

The Centre for Policy Development's report describes these measures as a "disproportionate reaction" to the small number of people, who amount to one percent of all applications for asylum worldwide, who arrive in Australia.

Of the 358,800 asylum applications made to 44 industrialised states in 2010, some 56 percent of these were lodged in just five nations, the study said.

"Australia barely gets a mention because its numbers are miniscule compared with those of other industrialised states," it said.

The report cited the Nordic countries of Denmark, Sweden, Norway, Finland and Iceland, with a combined population of 25 million (roughly equivalent to Australia's 22.5 million) as receiving and processing 51,120 asylum claims in 2009.

Australia dealt with just 6,500.

The report called for the phasing out of mandatory detention, an increase in Australia's annual refugee intake from 14,750 to 20,000 by 2016, and the appointment of an independent child guardian for unaccompanied minors.

- AFP