Ethnic communities say they feel unfairly targeted, while the government believes it will improve security and make the term 'citizen' really mean something.
Joseph Caputo, Director of Australia's Federation of Ethnic Communities Council, warns the country's reputed multicultural legacy is at stake.
A Senate inquiry saw more than 13-thousand submissions made, both for and against the government's citizenship bill.
Assistant Immigration Minister Alex Hawke says the government believes its measures are non-discriminatory, and are in Australia's best interests.
In Canada, permanent residents must have lived in the country for four out of the previous six years, to be eligible. It takes five years in France, eight in Germany. And in the United Kingdom, it takes six years, with one as a permanent resident, before citizenship is possible.
Senate committee chair, Liberal Senator Ian Macdonald, concedes a retrospective rule needs to be included so the new laws do not apply to people previously eligible to apply. But he says the bill will add value to the term "citizen".
But Indian Australian Community leader in Melbourne, Manoj Kumar says these changes are hurtful and designed to divide community.