Australian Prime Minister Malcolm Turnbull on Wednesday joined politicians from all sides of the political spectrum to condemn a senator's "racist" inaugural speech.

Turnbull spoke out against Fraser Anning, a senator for the right-wing Katter Australian Party, after he invoked the term "the final solution" to call for an end to all immigration by Islam followers.

Anning's speech has drawn comparisons to the Nazi Party, whose plan to kill the Jews of Europe was referred to as the "final solution" by party leaders.

Responding to the speech on Wednesday, Turnbull said the remarks were "appalling".

"We are a nation that does not define its nationality, its identify by reference to race or religion, or cultural background or ethnic background," he told reporters.

"We reject, we condemn racism in any form, and the remarks by Senator Anning are justly condemned and rejected by us all."

In his speech on Tuesday night, Anning declared that the reasons "for ending all further Muslim immigration are both compelling and self-evident."

"The record of Muslims who have already come to this country in terms of rates of crime, welfare dependency and terrorism are the worst of any migrant and vastly exceed another immigrant group," he said.

"The final solution to the immigration problem, of course, is a popular vote."

Given the opportunity to do so on Wednesday, Anning refused to apologize for his comments, saying that he "doesn't regret anything."

He was officially censured by the Senate on Wednesday morning with both sides of the political spectrum joining forces to condemn the speech.

Penny Wong, the leader of the Opposition Australian Labor Party (ALP) in the Senate and a migrant herself, said that the speech "sought to make one part of Australia less worthy of empathy."

"We saw a speech that sought to divide us. We saw a speech that sought to fan prejudice. We saw a speech that sought to fan racism," she said.

"A nation that is divided is never stronger and making others lesser, fanning prejudice and discrimination, has never made a nation safer," she added.

Energy and Environment Minister Josh Frydenberg, who had relatives who endured the Holocaust, said the speech was insensitive and hurtful.

"The Nazi war machine was responsible for the deaths of more than 10 million innocent lives including 6 million Jews and 1.5 million children," he told reporters on Wednesday.

Australia's immigration policy has been non-discriminatory since the White Australia policy, which prioritized migrants from Europe, was repealed in the 1960s.

Tony Burke, a senior member of the ALP said that Anning's choice of words was reprehensible.

"There has to be a point when this Parliament says enough, and if we haven't reached that point tonight then for some of us there is apparently no limit at all," he told parliament immediately following Anning's speech on Tuesday night.