Soon as heard that story I thought someone would be silly enough to try to link the detention of a possible terrorist suspect as some reason to stop the refugee program.
Now lets see whats wrong with your argument.
1 Well he was caught (in Indonesia)
2 If he had made it onto a boat he would have detained on Christmas Island
3 Is there some law that says potential terrorists can't arrive by plane with a passport and a visa. (No more tourists, skilled workers etc for Australia then)
4 Since our most famous "terrorist" was Australian born should we all be imprisoned just in case.