It comes after intelligence sources reportedly warned "the beast is stirring", meaning the people smuggling trade, after the law passed the Senate yesterday 36 votes to 34.
The Senate passed similar amendments on medical evacuations despite ruling party objections on the last day Parliament sat past year.
Home Affairs Minister Peter Dutton picked up the thread and warned news of the legal changes had already reached people smugglers as parliamentary debates were closely followed overseas.
The prime minister said the Labor had "no idea of the consequences they are playing with" and "will unleash a world of woe again" if it supports the bill.
When he announced his decision, Mr Hinch said it was the hardest vote he had cast in the Upper House.
"I think this country in 2019 is not the same nation as 2001", he told reporters in Canberra.
But Attorney-General Christian Porter went further than both his Coalition colleagues, saying the Federal Government would not be able to bar two alleged sex offenders from entering Australia under the new laws. But many other people with the same recognised refugee status as Hakeem remain detained in awful conditions on Manus and Nauru.
Kerryn Phelps, the independent MP who championed the bill and who previously served as President of the Australian Medical Association (AMA), described the vote as "such an important day for sick people needing medical care they are unable to receive".
Mr Morrison declared national security measures would be strengthened under the government's Operation Sovereign Borders after the medivac bill was passed.
"My job now is to do everything within my power, and in the power of the government, to ensure that what the parliament has done to weaken our borders does not result in boats coming to Australia".
Furious at Labor for insisting on the changes, the government is now preparing for an election fight on border protection by claiming Mr Shorten would dismantle offshore processing and allow more asylum seekers to arrive by boat.
"To open up a taxpayer funded motel in Christmas Island to basically advertise to people smugglers in the region that indeed business is back - that is a desperate act".
Refugees seeking a medical transfer will be processed at a controversial detention center to be reopened on Christmas Island, an Australian territory about 1,550 km (960 miles) northwest of the mainland.
Meanwhile, Labor is aiming to ramp up penalties against bankers and financial institutions who break the law. The government had similarly made the offer only available to refugees on the islands at the time to avoid attracting new asylum seekers, Mr.
The opposition Labor party responded to Morrison's announcement calling it "scare tactics" and accused the prime minister of manufacturing a fear of migrants to win votes.