Federal Liberal MP Trent Zimmerman says e-cigarettes could save thousands of lives if long-term smokers turn to them as an alternative to tobacco.
But he was one of just three dissenting voices against a parliamentary health committee majority who oppose legalising nicotine e-cigarettes.
Mr Zimmerman said the committee was presented with "starkly conflicting views" in their near year-long investigation of e-cigarettes.
He concluded, along with fellow Liberals Tim Wilson and Andrew Laming, that nicotine-containing e-cigarettes should be legalised in Australia as another weapon to be used to reduce stalled smoking rates.
"While the evidence base regarding e-cigarettes is still emerging there are clear indications that e-cigarettes are significantly less harmful to human health than smoking tobacco cigarettes," Mr Zimmerman said.
"If long-term smokers who have been unable to quit smoking tobacco cigarettes switch to e-cigarettes, thousands of lives could be saved."
But Labor MP Steve Georganas, who presented the committee's majority report to parliament on Wednesday, said better evidence is needed before taking that step.
He said while there was evidence that hardcore smokers could switch to less-harmful "vaping" the health impact needed clarification.
"Until science experts say there is no impact on health we should be very cautious in this area," he said.
The committee recommended the National Health and Medical Research Council fund an independent and comprehensive review of the health impacts of e-cigarettes, which is updated two-yearly to take into account new research.