Mr Palmer says the federal government's position on not issuing visas to asylum seekers fleeing Indonesia fuelled the people smuggling trade.
The mining tycoon said the government should allow asylum seekers to pay their own plane fare into Australia.
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"We can say `you can buy a ticket if you believe you're a refugee and you can come to Australia in normal transport at one tenth the cost'," he told journalists at the Federal Liberal party conference in Melbourne on Saturday.
"The ones that get here, allow them to be processed; the ones that are not legitimate, send them back on the next flight."
Mr Palmer said Australians collectively bore the responsibility of asylum seekers drowning at sea.
"We can eliminate the people smugglers. We can eliminate the problem. We can eliminate the drownings. We can treat people as human beings."
Mr Palmer said he did not approve of the offshore processing supported by both major parties.
"What sort of a nation are we if we don't follow our international responsibilities and allow people to come here safely?" he said.
The council delegates unanimously passed a motion that condemned the federal government's policy of onshore processing of asylum seekers, and called on it to strengthen border protection policy.
