The families of human rights abusers and corrupt officials should face sanctions in Australia, federal politicians have been told.

A parliamentary inquiry into a so-called Magnitsky Act also heard Australia should share intelligence with the US and Canada to find violators.

Human Rights Network of Australia representative Janice Le said abusers should be barred from holidaying or sending their children to school in Australia.

"These benefits are for the vast benefit of law-abiding citizens," Ms Le told the committee on Tuesday.

"Not the human rights violators and corrupt officials leading a great life from the blood and tears of their victims."

Ms Le said Australia should freeze assets held by family members linked to violators, including properties or business investments.

The proposed laws, named after lawyer Sergei Magnitsky, would allow the government to name and ban people linked to corruption or breaches of international law.