But as revealed by The Australian Financial Review in April, when Prime Minister Malcolm Turnbull unveiled the first tranche of visa and citizenship changes, the government is moving towards introducing "provisional residence" for migrants before they can take out permanent residency.

Saving taxpayers' money

The consultation process will look at "the role a period of provisional residence could play in enhancing the integrity of the visa system and easing the burden on taxpayer".

"Most of the permanent visa categories do not have a provisional stage, and applicants do not have to spend any time in Australia prior to applying for – or being granted – permanent residence," the consultation paper says.

"Australia's approach differs from like-minded countries. For example the United Kingdom, the Netherlands, the United States and others have a more formal assessment process and period for evaluating those who seek to stay permanently."

While provisional residency will save the budget money, the mooted change is likely to be controversial though after leaked Cabinet papers late last year revealed warnings from the Department of Social Services it could cause a breakdown in social cohesion and may lead to violent extremism through the creation of a two-tier society.

Terror fears

As part of his announcement, Mr Dutton said the government would partner with the private sector to ensure visa processing is more efficient for "legitimate travellers".

Tying the visa overhaul to combating terrorism, Mr Dutton also flagged greater collection of biometric information from applicants to boost authorities' ability to conduct identity checks.

"Reform of Australia's visa system will build on measures to enhance assessments of visa applicants and holders and to support decisions on the grant or revocation of visas, as recommended by the 2015 Joint Commonwealth-New South Wales review of the Martin Place Siege," Mr Dutton said.

The minister said Monday's announcement had no immediate impact on visa holders, with the consultation period open until September 15. The findings "will inform a final package of changes which will be subject to further government approval".