The government said a temporary building could be erected in Canberra at a cost of up to AUD 4.2m ($3.23m), ABC reported.
Attorney-General Simon Corbell told Liberal politician Brendan Smyth: "What that would allow for and pay for is the construction of a temporary court building probably to be based on a shipping container-based model to be developed on a space."
Smyth replied: "Sorry, a pop-up court?"
Corbell responded: "Pop-up court, yes, on the space adjacent to the Magistrates Court."
He said temporary shipping container-based court facilities had been "deployed" before in New Zealand.
"The same approach was used in Christchurch following the earthquake," he added.
The new court facility is expected to be finished in early 2018.