Displaced Palestinians leave an area of Khan Yunis city in Gaza after a new Israeli evacuation order
Displaced Palestinians leave an area of Khan Yunis city in Gaza after an evacuation order from Israel. AFP

The Australian Parliament witnessed a fierce war of words, as members widely criticized Coalition leader Peter Dutton for demanding a temporary ban on Gaza refugees, with Independent member Zali Steggall urging him to stop being a "racist."

Dutton demanded that Palestinians fleeing from the conflict should not be granted visas at the moment due to security concerns, while stressing he was not against people of a specific religion, reported The Guardian.

"This is not against people of a particular political persuasion. This is about keeping our country safe," Dutton said. "And Anthony Albanese has failed the Australian public and he should stand condemned."

Steggall, the member from Warringah, said it was "extremely concerning" and "whipping up a sense of fear." As the Opposition, including Dutton, interjected her speech, she replied, "We heard you in silence. You can hear me in silence. Stop being racist!"

Steggall later withdrew her comments.

Australia has accepted nearly 3,000 visa applications from Palestinians in Gaza or the West Bank, while rejecting 7,000, Home Affairs Minister Tony Burke said, ABC reported.

Meanwhile, Dutton rejected claims of being racist, saying, "I'm sure the vast majority [of Palestinian refugees] are just innocent people fleeing a war zone, but our country is just safer when we have a proper process. If you bring in 100 people, let's say 99 are good, if one person comes in [who supports Hamas], how is that in our country's interests?"

Independent MP Dai Le from Fowler in Sydney's south-west spoke of her family fleeing war-torn Vietnam to take refuge in Australia.

"I'm thinking, 'Gosh, what if there are families like mine, exactly the same position, but then another country ... is saying 'they're all terrorists'," she said. "That would mean that I wouldn't have had the opportunity to be where I am today."

The Coalition had been demanding biometric tests, face-to-face interviews and intelligence agency ASIO's assessment before granting visitors visas to refugees.

Senator James Paterson said all applicants should be referred to ASIO to assess if they have expressed support for Hamas.