Prime Minister Malcolm Turnbull announced last week that a bill would be introduced to parliament this week which would see those who were transferred as adults to offshore processing camps on Manus Island and Nauru from 2013, barred from ever entering Australia, even as tourists and citizens of another country.
“We certainly agree people who come here by people smugglers shouldn't be allowed to settle here permanently” he told the ABC’s Insiders program on Sunday.
“But this latest proposal from Mr Turnbull is just ludicrous on face value. It doesn't seem to make any sense to say that someone who is found to be a genuine refugee, who then becomes a Canadian or American citizen couldn't visit Australia in 40 years' time as a tourist or teacher? That's just over the top."
Labor says it has not seen any signs that the government is working on a resettlement deal for the asylum seekers in limbo in Nauru and Papua New Guinea as a second part to its planned lifetime visa ban.
Mr Shorten said he talks to the prime minister regularly but the government has not been forthcoming on any plans for deals with third countries.
It's been suggested the government wants asylum seekers sent to offshore immigration processing banned from ever entering Australia before it announces a deal to resettle those found to be refugees.
News Corp reports the government is in talks with Malaysia, Indonesia, the Philippines and central American countries.
"We see no signs that the government has got any resettlement plans to conclude," Mr Shorten said.
"If they are doing that, they should sit down and talk to us."
The opposition is scrutinising draft legislation for the visa ban and is expected to decide its stance at Tuesday's caucus meeting.
Mr Shorten - while not taking an explicit stance - believes the plan is ludicrous and over the top.
Meanwhile, Immigration Minister Peter Dutton says the amount of asylum seekers who voluntarily choose to go home rather than remain on Manus Island or Nauru suggests many are "trying it on".
Almost 670 people have left the offshore immigration centres - most from the single men camp in PNG - and the majority left before their refugee claims were finalised, News Corp reported.
"Australians aren't mugs and neither is this government," Mr Dutton told the outlet.
"We will help genuine refugees but we aren't going to be taken for a ride.''
-With AAP
