Dutton warns people smugglers haven't gone away

Home Affairs Minister Peter Dutton has confirmed Malaysian authorities have intercepted an asylum seeker boat headed for Australia or New Zealand.

More than 130 people were on board.

Mr Dutton said the boat, believed to be a small tanker, was much bigger and more sophisticated than previous smuggling attempts.

"It was certainly more complex," the minister said.

He used a media conference in Canberra to warn that people smugglers have "not gone away", and again hit out at Labor saying they were sending the wrong signalsand the boats would return under a Shorten government.

Commander of Operation Sovereign Borders, Air Vice-Marshall Stephen Osborne, said he would be worried by a change in border protection policy.

"If we make changes, I would have some concerns," he said.

Mr Dutton then stepped in and told reporters not to ask the border force boss further policy questions.

The size of the intercepted vessel indicated it had the capacity to head for New Zealand.

Mr Dutton said Labor raising the Land of the Long White Cloud as a possible re-settlement country was being used by the smugglers.

"New Zealand is being marketed as a destination," he said.

"People are hearing the message New Zealand is a prospect for them.

"It is being marketed in the same way as Australia. People need to be careful and mindful of what they're saying publicly."

Mr Dutton also pointed to the fact you could land in Australia from New Zealand and receive a visa.

"That is the sugar," he said.

"People believe New Zealand is a back door way of getting to Australia."

He said the New Zealand Government wasn't to blame, and instead focused his attack on Labor.