Two Afghan refugees have taken legal action against Immigration Minister Peter Dutton over delays in the processing of their applications for Australian citizenship.

Key points: The Hazara men arrived in Australia by boat in 2010 and were found to be refugees.

The Hazara men arrived in Australia by boat in 2010 and were found to be refugees. Despite passing citizenship tests they have not been given citizenship ceremonies.

Despite passing citizenship tests they have not been given citizenship ceremonies. They have launched Federal Court action to try and have applications finalised.

The ethnic minority Hazara men fled persecution in Afghanistan, arriving in Australia by boat in 2010 and were granted permanent protection visas as refugees.

The Federal Court in Melbourne has heard the men qualified for Australian citizenship by living in the community for four years and then sitting and passing the citizenship test.

However, since passing the test in 2014 and 2015 respectively, the men have not progressed to receiving a citizenship ceremony.

The ceremony is the final stage of becoming of a citizen, where applicants make a pledge of commitment to Australia and receive a certificate of Australian Citizenship.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 8 minutes 35 seconds 8 m The two Afghan refugees taking legal action over delays in processing their applications to become A

"After I passed the test I was very happy," one of the litigants known only as "BMG16" told Lateline, but after almost two years of limbo he decided to take the matter to court.

The Immigration Department's service standard of processing citizenship applications is 80 days.

"I'm working for five years, I pay tax, I'm not [on] Centrelink, I have a good [police] record. I don't have any problems in Australia," the man said.

The Refugee Council hopes the court action will serve as a test case for potentially hundreds of refugees in a similar predicament.

"It seems to be discriminatory," the Council's Asher Hirsch said.

"It seems to be affecting refugees who came by boat where other migrants applying for citizenship such as those coming from the UK are getting processed in a much quicker time."

Hazaras' citizenship ceremonies cancelled

Sydney's Hazara community is watching the court case closely with several members telling Lateline they have received invitations to citizenship ceremonies, only to have them cancelled.

Community advocate Arif Nabizada has been fielding calls from many Hazaras who are frustrated by delays of up to two years.

"Obviously it is very unfair," he said.

"I'm really hoping that this person will win the court case because that is a window of opportunity for others."

Lateline has been told a number of Sri Lankan Tamil permanent residents have also had their applications stalled.

Lawyers for the Federal Government belatedly filed a response to the court case today after missing a deadline last week.

A spokesman for Mr Dutton said he would not provide any comment given the matter is before the court.

Watch Jason Om's report on Lateline at 9.30pm (AEST) on ABC News 24 or 10.30pm on ABC TV.