The call came after the release of a Labor party report into illegal fishing, which found there were 13,000 illegal vessels reported entering Australian waters last year, but only about 300 were apprehended.
The report also found illegal fishing is a serious threat to Australia's fish stocks, and is a quarantine risk.
The federal Labor leader, Kim Beazley, says once the crew have been apprehended, illegal fishing boats should be sunk at sea.
But the federal Fisheries Minister, Eric Abetz, says that would breach international law, and create junkyards in Australian waters.