The controversial lever-action Adler shotgun will be subject to stricter controls following an agreement by state and territory leaders.
The five-shot version of the shotgun will now be classified as Category B instead of A under the national firearms agreement, according to a communique from Friday's Council of Australian Governments meeting at Parliament House in Canberra.
The seven-shot version will be classified as Category D, meaning it will only be available to a very limited group.
Prime Minister Malcolm Turnbull said there was also agreement to undertake a national gun amnesty to reduce the number of unregistered firearms in Australia, expected to commence mid-2017.
"This is the first time the national firearms agreement has been strengthened in this way in 20 years," he told reporters.
"It continues Australia's strong approach to the regulation of firearms."
The Abbott government in 2015 paused the importation of the seven-shot Adler 110 shotgun in the wake of the Lindt cafe siege.
It's been paused again since, pending agreement from the states and territories on how it should be classified.
The federal government is responsible for dealing with imports under Customs powers.
The issue has caused divisions in the government, with Nationals senators Bridget McKenzie and John 'Wacka' Williams crossing the floor to vote with Liberal Democrat David Leyonhjelm in a bid to overturn the import ban.
Senator Leyonhjelm said the major parties would lose votes over the decision.
"There are now 800,000 firearms owners in this country who feel they have been placed in the deplorables basket," he said.
COAG failed to address what would happen to thousands of lever action shotguns already in private hands.
"Assuming there is no buyback, what will prevent them being used by terrorists and armed criminals - just like they haven't been for the last 100 years? "
