Victoria is a “parallel universe” in a "fairyland" about gang violence, says Immigration Minister Peter Dutton as he hit back at accusations that he has been inciting racism.

During an interview with radio station 2GB on Thursday, Mr Dutton fuelled the debate again, while touching on comments made by Joint Standing Committee on Migration chair Jason Wood.

Victorian Liberal MP Mr Wood has called for victims of crime perpetrated by foreign nationals to have more of a say in the legal process if an assailant fights deportation attempts prosecuted against them.

“He (Jason Wood) was one of the first people to call out this African gang violence, which in Victoria you’re not allowed to use those words," Mr Dutton told 2GB.

“It’s like some parallel universe going on down there at the moment where you’re not allowed to refer to these people as ‘in gangs’. I mean it’s fairyland stuff."