The Liberal Party’s peak council has voted almost 2:1 to privatise the ABC in a call that was swiftly rejected by cabinet ministers amid warnings it would be “total madness” to act on the call.

The overwhelming vote at the party’s annual council in Sydney gained vocal support from conservative think-tank Institute of Public Affairs, which said the company could be sold or given to Australians who already own it.

The vote came in a debate on Saturday where about 110 council delegates, representing Liberal branches from across the country, also voted for an efficiency review into SBS.

The council also voted, by 43 to 31 votes, to relocate the Australian embassy in Israel from Tel Aviv to Jerusalem, a highly contentious move opposed by Foreign Minister Julie Bishop during the debate.