Proposed reforms would give the government the power to stop tourists using their temporary visas to claim asylum, if a change in global circumstances meant they would likely try to stay in Australia after their visa ended.
If passed by parliament, the move would mean people who had already been granted a tourist visa could be blocked from entering Australia, if the government was concerned they would seek asylum.
Assistant Citizenship and Customs Minister Julian Hill introduced the changes to parliament on Tuesday, saying they would allow the government to respond rapidly to evolving global circumstances such as wars.
"The migration system must be able to respond quickly and at scale to events where it may be necessary to limit travel to Australia on a temporary basis," he told parliament.
The government is concerned large numbers of Iranians who already have Australian tourist visas and other temporary visas could seek asylum here now their country is under American and Israeli attack, a Labor source said.
The overhaul was introduced shortly after five humanitarian visas were given to members of the Iranian women's soccer team, who feared persecution in their home country after refusing to sing their national anthem before an Asia Cup match in Australia.
The government would offer protection to any other members of the team who wanted it, Prime Minister Anthony Albanese said.
Under the reforms, a "class or classes" of foreign citizens could be blocked from entering Australia if the government believed they might remain in the country after their visa expired, Mr Hill said.
Exemptions will apply for parents of children in Australia, the immediate family of Australian citizens or permanent residents, refugees, and other "compelling or compassionate" cases.
The legislation aims to stop people who could seek asylum ever coming to Australia, rather than expelling them from the country once they are here.
Asylum Seeker Resource Centre chief executive Kon Karapanagiotidis called the bill "truly appalling".
"It sends a disturbing message about who is worthy of protection and who is not," he said.
"If they are able to act so quickly and compassionately for these women, why are they closing the door on others?"
Labor hopes to get the changes through parliament by the end of the week, but will need the support of either the coalition or the Greens to do so.
Opposition Leader Angus Taylor said his party supported the legislation in principle but wanted to see more detail about temporary revocations.
"It will make a difference to a number of people who do seek to come here," he told reporters.
Greens defence spokesman David Shoebridge accused the Albanese government of pursuing "a Trump-like mass visa freeze" targeting people from the Middle East.
"The only other country in the world that's passing refugee laws like this is the United States," he told reporters.