Detention watchdog should report to parly

The federal government has been told a new watchdog for immigration detention centre service providers should report directly to parliament.

The detention assurance team will investigate or support inquiries into alleged misconduct.

It will also audit services providers under government contract.

Immigration Minister Scott Morrison says the new body will work within his department.

Its formation comes after an independent inquiry was launched in October to look at allegations of abuse and sexual misconduct at the detention centre on Nauru.

Labor frontbencher Brendan O'Connor, a former immigration minister, is backing the move provided it's not a rebadging of existing departmental officers.

But Greens senator Sarah Hanson-Young says the devil will be in the detail.

"This group should be reporting to parliament directly, not just the minister, to ensure openness and transparency," she said.