The federal government's policies over asylum seekers reinforced Australia's reputation for breaking international obligations, the Uniting Church said.
Church leaders said few would be surprised the government had ignored the pleas for asylum of the 14 Turkish Kurds who landed on Melville Island last week.
"Australia's legislative response to asylum seekers has once again been shown to be a charade," Uniting Church president the Reverend Dean Drayton said.
The Kurds were sent back to Indonesia after the island was excised from Australia's migration zone.
Immigration Minister Amanda Vanstone and Foreign Minister Alexander Downer made an embarrassing backflip by admitting the Kurds tried to claim asylum -- something the government initially denied.
The Reverend Elenie Poulos, who recently met with the United Nations High Commissioner For Refugees in Geneva, accused the government of consistently misleading the public over its refugee policies.
Ms Poulos said it was extraordinary the government risked its integrity over a small boatload of "desperate people".
"It is indeed a sad time in our country's history when we close our hearts, and our borders to match," she said.
She said the government's refugee policy breached human rights obligations and was neither respected nor admired internationally.
"Australia's reputation has not so much been damaged by the latest lies but rather reinforced," she said.
"The international community are only too aware of Australia's willingness to breach its international obligations.
"What may shock them is exactly how far this government is prepared to go."