He added: "The final solution to the immigration problem is, of course, a popular vote". Claiming that Muslim Australians are unable to integrate, he said adherents of Islam "do not work and live on welfare", and bring the threat of terrorism.
One of the most controversial comments of Mr Anning's speech was his call for a "final solution" to immigration.
"Labor frontbencher Chris Bowen said the use of the term 'final solution", which has been historically associated with the Nazi plan in World War II for killing millions of Jews, was "utterly unacceptable".
Anning held third place on One Nation's Queensland ticket at the 2016 election.
Senator Hanson said she was "appalled" by the remarks of Senator Anning, who was elected on the One Nation ticket to replace Malcolm Roberts but quit the party and later joined Mr Katter's group.
"(Parliament) is united today in condemnation of those awful words that were spoken in the other place yesterday".
"That has nothing to do with "the final solution", the thought police got onto that".
In particular critics leapt on the senator's use of the term "final solution" to describe his recommendation of a plebiscite to settle the matter of immigration in this country once and for all. Following the win, a confident Faruqi told BBC that she would use her role to push for a "positive future for Australia where we are stronger for our diversity".More news: Turkish Court Rejects Appeal to Free Detained U.S. Pastor
Hanson rounded on senators who listened to Anning's speech without walking out in condemnation, accusing them of being "gutless" for re-entering the Senate on Wednesday to criticise him after the public mood turned.
"Fraser Anning should not only retract his comments last night but he should also immediately go and visit a Holocaust museum ... and hear first hand from survivors how raw the pain is and hear about and see the destruction and devastation caused by the Nazi killing machine", he told Australian media, according to The Guardian.
Pauline Hanson said her former MP's speech was straight from Nazi propaganda chief Joseph Goebbels' handbook. "Now we are in danger of being swamped by Muslims who bear a culture and ideology that is incompatible with our own", she said in September 2016.
Prime Minister Malcolm Turnbull said senator Fraser Anning's speech was "appalling".
Senator Anning says the words were taken out of context.
The non-apology was followed up with an appearance on Sydney's 2GB Radio, where he told host Alan Jones that Muslim immigration needed to end because some of the immigrants could be terrorists. "I love it!" He maintained "90 per cent of Australia have been waiting for someone to say it and believe it". Anning has since said he did not know the history of the phrase.
On Wednesday, he said: "I don't regret anything".
Environment and Energy Minister Josh Frydenberg, who is Jewish and who lost relatives in the Holocaust, called Anning's speech "hurtful, divisive and unacceptable".