Mr Shorten told Fairfax Media that Labor would look closely at the legislation "when the government can be bothered releasing it".
"Of course people who come by people smuggler should not be allowed to settle here - we will never allow the people smugglers back in business," he said.
Nevertheless, he pointed to contributions refugees such as Frank Lowy, Gustav Nossal and Hieu Van Le had made to Australia.
"It seems ridiculous to me that a genuine refugee who settles in the US or Canada and becomes a US or Canadian citizen is banned from visiting Australia as a tourist, businessman or businesswoman 40 years down the track," Mr Shorten said.
He also took aim at the prime minister, saying the Mr Turnbull of old would never have proposed this to keep the right-wing extremists in his party happy.
"He's earning the praise of Pauline Hanson - I hope he's proud of that."
Refugee ban plan is legal, PM insists
The federal government insists its lifetime ban on asylum seekers who arrive on boats from ever entering Australia is legal under international refugee obligations.
It wants to ban all adults sent to offshore immigration centres on Nauru and Papua New Guinea's Manus Island from ever entering Australia, even as tourists or on business, regardless of whether they're found to be refugees or not.
