In a sign of growing discomfort with the plan to send 800 boatpeople to Malaysia in exchange for 4,000 of its registered refugees, MPs voted 70-68 for a motion demanding the policy be abandoned, including three key crossbenchers.
It is the first time lawmakers have formally condemned Prime Minister Julia Gillard, who leads a fragile coalition with a mere one-seat majority, and casts doubt over the swap, which has drawn widespread criticism.
