Migrants won't be picked for cash: Abbott

Tony Abbott has all but ruled out migrants paying to live in Australia.

That's despite his treasurer asking for an independent review of that possibility.

The Productivity Commission has released a discussion paper as part of a year-long review of Australia's migrant intake.

It has flagged the possibility of the main selection criteria being entry fees migrants are willing to pay, rather than the skills they can contribute.

The prime minister stressed that what was included in the discussion paper was not government policy.

"I think it is unlikely to become the policy of the government," he told reporters in Canberra, adding migration policy was based on what matched the best values of Australia.

"That's the way it is and that's the way it will stay as far as I'm concerned."

The terms of reference for the review, set by Treasurer Joe Hockey, explicitly ask the commission to look at the effect of entry fees.

In a scenario Mr Hockey outlined, the government wouldn't impose skills requirements for migrants.

They would have work rights but limited access to social security and subsidised education, housing and healthcare.

Humanitarian refugees would not have to pay the entry fees.

The commission will deliver a final report by March 2016.