Visa processing focus of new Senate probe

Australia's decision to overhaul visa processing has been referred to a Senate committee amid Labor claims the government is privatising the system.

A tender process is under way to implement a digital way to process visa applications, with the project described as the most significant change to immigration in 30 years.

The upper house's legal and constitutional affairs committee will look at visa processing privatisation as part of a broader inquiry into the outsourcing of government services.

Labor's multicultural affairs spokesman Andrew Giles said the move would cost 2000 jobs and compound issues like visa fraud and data security.

The Home Affairs Department has disputed the opposition's claims, saying the government will always retain responsibility for immigration policy, visa decision-making and security checks.

Mr Giles also raised concerns one of the groups vying for the contract was headed up by Scott Briggs.

"Mr Briggs is a prominent activist in the Liberal Party and someone whose business has been a significant Liberal Party donor," the Labor MP said.

He accused Home Affairs Minister Peter Dutton of hiding behind the department's statement.

"It's time for Peter Dutton to join with Labor and rule out visa privatisation, standing up for Australian jobs, standing up for the national interest."

Aside from the visa and citizenship program, the inquiry will also look at Centrelink's controversial "robo-debt" program and broader outsourcing across the human services portfolio.

The National Disability Insurance Agency will also come under the microscope, with outsourcing again the key issue to be raked over.

Making public sector jobs private in government security vetting is included in the inquiry's terms of reference.

The committee is due to hand down its report in October.