Australia on Tuesday said the two Indian doctors held in connection with last week's failed terror attack in the UK had undergone stringent reference checks before being employed in the island nation.

"Security checks are done by the Commonwealth as part of the immigration process," Queensland Premier Peter Beattie said adding, the state medical authorities made the appropriate assessments before employing them.

Authorities in Queensland said the first doctor arrested is Mohamed Haneef, a 27-year-old Indian who has been working as a registrar at the Gold Coast Hospital.

The second doctor detained for questioning has not yet been named.

Haneef was recruited from Liverpool 10 months ago, after replying to an ad in the British Medical Journal. He was working at the Gold Coast Hospital since last year, when he came to Australia on a 457 temporary skilled worker visa, sponsored by the Queensland Health Department, Beattie said.

The Australian Medical Association also denied any failing by the Queensland medical authorities while recruiting Haneef, according to local radio report in Melbourne.

Queensland President Dr Ross Cartmill said it is the responsibility of the federal Immigration Department.

"We believe it's the role of the Department of Immigration and Citizenship to assess eligibility for residency visa," he said adding, "it's the role of the medical board to assess eligibility to practice medicine."

Cartmill also said Tuesday's events should not affect the public's attitude towards overseas doctors.

"There's no justification for the community to take this issue as a universal negativity," he said.

Meanwhile, police on Tuesday said the second Indian arrested was simply assisting police with their inquiries and is not being detained.

"The second person has never been the subject of this investigation. It's just another person who is assisting us with our inquiries and that person is not being detained or held in any way shape or form," Australian Federal Police Commissioner Mick Keelty said.

"So we wouldn't want to exaggerate the role of that second person for all intents and purposes, he may or may not become a witness," he added.