Home Affairs Minister Tony Burke has accused Mr Dutton of being "reckless with national security" for not attending briefings on what police knew from their investigations into the caravan.
He said the opposition leader had been regurgitating a narrative created by organised crime groups, after investigators revealed the caravan was never intended to be used for an attack on prominent Jewish sites.
"Peter Dutton made a decision to not find out the facts from the Australian Federal Police, to ignore the advice from (Australian Security Intelligence Organisation) in lowering the temperature, simply because it suited his self-promotion ambitions," Mr Burke said on Tuesday.
"We continued to say publicly that Peter Dutton should be briefed, we continued to remind him that he was able to be briefed by the Australian Federal Police. He deliberately chose to not find out."
But Mr Dutton said he had sought briefings on the investigation, dismissing the comments as the home affairs minister just trying to look tough.
"What's happening at the moment is that you're seeing this beauty parade between (Treasurer) Jim Chalmers and Tony Burke, because they anticipate that Anthony Albanese won't be the leader of the Labor Party for much longer at all," he told reporters on the Gold Coast.
"What's obvious is that Tony Burke's been caught out lying today."
The opposition leader said Prime Minister Anthony Albanese needs to explain when he knew the caravan plot was a hoax.
"If the prime minister knew that this was a hoax and he didn't provide that advice to the Australian public, then we need to understand why," he said.
While no detonator was found in the vehicle at Dural in northwest Sydney on January 19, the sinister discovery shocked the nation during a wave of anti-Semitic attacks.
"That these highly publicised examples of anti-Semitism have turned out to be organised crime for a completely different motive does not change the fact that bigotry is unacceptable," Mr Burke said.
"It'll take a bit of processing but it doesn't undo the fear and concern people have.
"Now that we know what it is, at least that is not from a deep-seated hatred within the Australian community but that doesn't change the fact that anti-Semitism is real."
Attempts by politicians and media to link anti-Semitic incidents with efforts to support Palestinians were "irresponsible and dangerous", Jewish Council of Australia executive officer Sarah Schwartz said.
"Individuals are seeking to exploit the Jewish community, and the broader public's concern about anti-Semitism," she said.
"Disinformation and irresponsible reporting is providing a permissive environment for these malicious acts."
NSW Premier Chris Minns called the incident a "despicable conspiracy" and was glad the investigation had been concluded.
"The circumstances of the plot are so unreal as to be nothing that I've encountered before," he told reporters.
NSW Jewish Board of Deputies president David Ossip said the criminals involved "sought to take advantage of already-strained social cohesion and unprecedented levels of anti-Semitism by targeting the Jewish community for their own personal benefit".
"This is reprehensible and had a chilling effect on the Jewish community," Mr Ossip said.
"Confirmation that the caravan plot was fabricated will bring some comfort to the Jewish community and we look forward to receiving further information as the investigation continues to progress."
Australian Federal Police Deputy Commissioner Krissy Barrett said the caravan was never going to cause mass casualties, but was a concocted criminal plot to cause fear for their benefit.
Almost immediately on finding it, investigators believed it "was part of a fabricated terrorism plot - essentially a criminal con job", she said.
