The test was introduced by the Howard federal government in 2007, and amended by the Rudd government in 2009.
A person must get at least 15 of the 20 questions on the test right to pass.
Mr Dutton says he wants to see more focus on Australian values and people's ability to integrate into Australian society- including learning English, educating their children, and either having or getting good employment prospects.
He says most people do the right thing- but more needs to be done to weed out those who don't do the right thing.
