But the government has been "quietly" transferring children off Nauru, amid a public outcry and mounting concerns for their welfare.
In an interview with The Daily Telegraph, Mr Dutton also warned that resettling refugees from Nauru in New Zealand would risk restarting the smuggling trade to Australia - where they would end up in Nauru, regardless of whether they have children.
New Zealand has also offered to take some of the refugees, but Australia has declined the offer because it fears that would allow asylum seekers to enter through the "back door".
But more than 600 remain on Nauru, while refugee support groups say some 600 men are still in transition centres on Manus after the camp there was closed late a year ago.
Australia reintroduced offshore detention centers in 2012 after a surge in the number of asylum seekers trying to reach the country by boat. "But especially to these young men who are (at the Manus Island detention centre) for the most part. they are in utter despair with very similar medical indications".
On Thursday, he claimed criticism of poor living conditions among the would-be asylum seekers was offensive to the people of Nauru.
Under a deal with former U.S. president Barack Obama, 439 people of a potential 1,250 have so far been resettled from Manus and Nauru to the United States. But after more than a year of screening, only 439 have found new homes there.
With more than 200 children already evacuated, 38 remain on the island. "They are being moved to Australia on a case-by-case basis if that is required for urgent and significant medical treatment", he said.
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Legal action would continue to force the evacuation of the remaining children and could be extended to about 90 families on Nauru, some of whom with vulnerable adolescents who were detained as kids, the advocate said. "We have seen children not eating or drinking for days, in a comatose state".
Not everyone is on board with the move though, including one MP/ghoulish-halloween-mannequin-come-to-life named Tony Abbott who recently and incorrectly called Nauru "a very very pleasant island". "And we can end this nightmare today".
Australia is not giving a green light to people smugglers by moving asylum seekers off Nauru, Defence Minister Christopher Pyne says. "I haven't been showboating about it, I haven't been drawing attention to it. It's been done in accordance with our policies, our existing policies and I obviously don't go into the operational arrangements", Morrison added.
A YouGov Gallaxy national poll taken last month found 79 percent of respondents wanted the government to take up New Zealand's offer to accept 150 children and their families.
The Australian reports the move will impact about 40 children.
Guardian Australia has confirmed that 135 people have been brought to Australia from Nauru since 15 October, including 47 children.
Scott Morrison speaking on 2GB with Alan Jones today denied that the government was softening its tough border protection stance that asylum seekers on Nauru will still not be allowed to settle in Australia. That way, she said, she'd have a better future and be free.
Protesters at the "Kids off, everyone off; close Manus and Nauru".