Gillard has agreed to reverse Labor's previous rejection of offshore processing and the dumping of former Liberal Prime Minister John Howard's Pacific Solution after steadily increasing numbers of boats arriving from Indonesia were caught in a political gridlock.
More than 22,000 people have sought asylum since Labor came to power in 2007, opening Gillard's struggling minority Government to a debilitating attack from the Opposition and all efforts at reaching compromise blocked by both Liberals and Greens.
Opposition leader Tony Abbott refused to consider Gillard's alternative plan of a refugee swap with Malaysia, demanded the reintroduction of restrictive temporary protection visas and insisted that the navy turn boats back to Indonesia. The Greens, holding the balance of power in the Senate, refused to accept offshore processing in any form.
After more than a year of deadlock and failed attempts at compromise, Gillard set up the panel to produce a workable policy.
The panel backed elements of both major parties' policies and recommended the reopening of facilities in Nauru and PNG, continued talks with Malaysia, and increased co-operation with Indonesia.
A key aim was to discourage refugee boats by increasing the barriers to asylum in Australia, undermining the sales pitch of people smugglers. While Australia's refugee intake will be increased to 20,000 a year, and up to 27,000 within five years, asylum seekers arriving by boat will not be able to enter the country until they have spent an equivalent amount of time to others applying through formal channels. That could take years.
The former Pacific Solution detention centres are expected to be replaced by new facilities that will allow asylum seekers freedom of movement, without confinement behind razor wire.
If Parliament acts quickly to pass the Migration Act amendments, Defence Force surveillance teams could be in Nauru and PNG by Friday.
The Opposition will make as much noise as possible, with question time yesterday dominated by continued attacks on the Government's handling of asylum seekers.
"We've had 22,000 illegal arrivals, we've had almost 400 illegal boats, we've had hundreds of drownings at sea because the current Government changed a policy that worked," Abbott said.
But Gillard told Parliament it was time to drop the politics "and to actually get on with the job of enacting the recommendations of this report".