The federal government will not increase the country's refugee intake "at this time", Tony Abbott has told reporters.
However, the Prime Minister remains committed to improving existing refugee settlement programs.
"While we don't plan at this time to increase the overall numbers within the existing program, there is a lot more capacity to look after people doing the right thing," he said.
His announcement follows a call by Liberal MP Wyatt Roy for a doubling of Australia's current annual humanitarian intake of 13,750 refugees.
The Australian Christian Lobby has also backed the Longman MP's appeal to provide more refuge, particularly to minority groups targeted by Jihadist militant group ISIS.
"The Government deserves credit for stopping people smuggling, halting the deaths at sea and removing children from detention," ACL's Managing Director Lyle Shelton stated.
"But the problem of 51 million displaced people in the world is massive and has been further exacerbated by the persecution of hundreds of thousands of Christians and other religious minorities in Syria and Iraq."
Last month, the coalition offered 4000 places typically reserved for asylum seekers in "desperate circumstances" to Iraqi and Syrian refugees displaced by the Islamic extremists.
"Extraordinary brutality requires extraordinary generosity and Australia, as a relatively wealthy nation, is well-placed to do more," Mr Shelton added.