The policy would not apply to serious violent offenders or those that had committed serious drug offences.
Also in Mr Peters' line of fire were white collar criminals, who he said were getting off easy with home detention sentences.
"How fair is that?" he asked.
"You throw a teenager from Otara into jail for robbing a dairy but a rich man from Remuera gets six months Home D."
"We have some bad news for the financial fraudsters - New Zealand First is going to put them in with the offenders doing hard labour."
Mr Peters also proposed changes to laws allowing concurrent sentencing, under which judges can allow offenders to serve shorter prison sentences at the same time as a longer one.
For those guilty of rape, and for those who offended while on parole, bail, or in custody, Mr Peters said New Zealand First would remove the option of concurrent sentences.
"It is simple - you commit these serious crimes at the same time - you will do all the time that goes with these offences."
The Sensible Sentencing Trust has consistently pushed for cumulative sentencing, saying the result of concurrent sentences was a "discounting" scheme for offenders.