Outspoken barrister Julian Burnside QC is proposing a Tasmania solution for asylum seekers.
Mr Burnside says the entire island could be declared a detention centre and boat arrivals could live there in the community.
"It's a sort of historical precedent," he told ABC television.
"It was used as a place for holding prisoners in the past and it's a place which would be fairly secure I think."
Mr Burnside says the Tasmanian government could be given $1 billion for its role in the program and taxpayers would still save $2 billion a year.
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"In addition we would cause much less harm to the people who would be integrated into the community in Tasmania," he said.
The prominent human rights lawyer has visited Tasmania to give a talk about Australia's asylum seeker policy.
He said his Tasmania idea was an extension of a "less ironic" proposal to house asylum seekers in regional communities, where they could boost struggling local economies by spending Centrelink benefits.
Tasmanian premier Lara Giddings said she was not aware of the plan.
"I don't really like detention centres for people who are asylum seekers," Ms Giddings said.
Mr Burnside said the incoming Abbott government should fund a processing centre for asylum seekers in Indonesia to help prevent the perilous sea voyages.
He said Australia should prepare for more arrivals when international troops withdraw from Afghanistan at the end of the year.
