A Senate inquiry has recommended the government’s controversial changes to citizenship requirements be abandoned.

The Senate Select Committee on Strengthening Multiculturalism was set up last year with a broad remit to canvas ways to improve Australia’s ethnic experience and boost social inclusion.

It released its report Thursday hours after Senator Pauline Hanson entered the Senate wearing a burqa.

It made a number of recommendations, including the creation of a federal Multicultural Act and code of multicultural ethics for parliamentarians.

"At a time when hateful and divisive rhetoric is rising amongst some political leaders both here and abroad, these recommendations are more important than ever," Greens Leader Richard Di Natale said.

"I heard from people who were afraid, afraid of the impact of the language being used and the actions being taken, by politicians and the media."

The Turnbull Government is proposing a raft of new requirements to become an Australian citizen, including a four year permanent residency requirement and a stricter English language test.

"The committee agrees that new migrants and refugees should be required to demonstrate an adequate level of English language ability when applying to be a citizen," the committee report said.

"However, the committee views the level of English proficiency required in the newly introduced [Citizenship Bill] to be unnecessarily high."

It said there should be a "basic" rather than "competent" English language requirement.

It also recommends the creation of a Federal Multicultural Act to “enshrine agreed principles of multiculturalism to support and frame multiculturalism in Australia.”

Almost every state, except Western Australia, has a multicultural act.

In their dissenting remarks to the committee, Liberal senators James Paterson and Jonathon Duniam opposed the report's recommendations.

Multicultural council recommends PM take control of multicultural affairs

In its submission to the committee, the Australian Multicultural Council, a government-appointed body, pushed for a federal act and the transfer of responsibility for multicultural affairs to the Department of Prime Minister and Cabinet.

“The placement of multicultural affairs within the Department of Social Services sends a wrong message to the community. It inappropriately links multiculturalism to social welfare,” it said.

“A much better solution would be to align multicultural affairs with citizenship and integration in the Prime Minister’s portfolio.”

It also claimed the government’s multicultural agenda would be better served by a distinct Office of Multicultural Affairs.

“The OMA could also be responsible for providing policy advice to the Prime Minister, enforcement of access and equity measures across the Australian Public Service, and for championing measures to advance equal access for culturally and linguistically diverse Australians to labour markets and education.”

Other recommendations from the committee include an intercultural education curriculum, an Australian Charter of Rights, and the development of a specific migrant-stream employment service to be run through the government’s Jobactive program.