Labor has decided to reject the proposed changes to citizenship laws

The Labor party room has decided to reject the Turnbull Government's proposed changes to citizenship laws.

New citizens attending the Australia Day Citizenship ceremony. Source: AAP

The government will now need to look to the Senate crossbench to pass its sweeping changes.

They would include longer waiting times for permanent residents, and the citizenship test would include questions on Australian values and tougher English language requirements.

The opposition argues the more difficult new test could create an underclass of migrants who are never able to unlock the rights of full citizenship.