The New South Wales government is investigating claims a Chinese developer promised overseas investors a permanent resident visa in Australia if they bought into a NSW Hunter Valley land deal.
The Conservative Party says concerns about immigration rorts need to be urgently addressed and the immigration and visa systems must be reviewed.
SBS News reports, Profit Palace Group was said to be offering residency in as little as six months and access to Australia's "social welfare benefits".
NSW Planning Minister Anthony Roberts labelled it "concerning" and said it did not pass the "pub test".
He has referred the matter to his department for investigation.
"It's the expectation of people in this nation that people can't buy their way into permanent residency or citizenship," Mr Roberts told reporters.
"Fair Trading will investigate, my department will have a look at how this occurred, and make sure it doesn't happen again."
Mr Roberts suggested the federal government consider strengthening its foreign investment laws and that the NSW government also look at improving its relevant laws.
Home Affairs Minister Peter Dutton on Monday said any false claims or promises being made about real estate deals would be properly investigated by police and/or agencies across Australia.
"If people have any information, please come forward to the Australian Border Force or to the Department of Home Affairs with that information and it will be properly investigated," he said.
Conservative Party leader Cory Bernardi says the immigration and visa system is being rorted.
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