Refugee experts have warned that Peter Dutton's call for pro-Palestine protesters on temporary visas to be deported will sow division and take a toll on the mental health of all refugees.
The opposition leader said demonstrators, who attended rallies in support of Palestinians in Sydney, who are on temporary visas should have them cancelled and be deported.
His remarks followed anti-Semitic chants shouted by some protesters and captured on video that were shared widely on social media.
It was not the first time Mr Dutton has targeted refugees using incendiary terms.
He previously accused African Australians of gang violence and warned that "illiterate" refugees would steal jobs from locals.
UNSW Professor Susan Rees, who leads one of the largest federally-funded mental health projects with people from refugee backgrounds, said Mr Dutton's "inflammatory approach" would have dire mental health consequences for all refugees.
"His comment about deporting people was insensitive and potentially dangerous for refugees who, regardless of their residency status, commonly fear being returned to countries where they experienced war and conflict," she told AAP on Friday.
"From a mental health recovery perspective, it is critical for people who have fled war and conflict to have security, safety and acceptance in the new country," Dr Rees said.
"Mr Dutton's statement is therefore highly provocative for these people, and it will lead to heightened states of anxiety and potentially more serious mental health impacts amongst an already at-risk group."
University of Melbourne historian Jordy Silverstein said the former immigration minister "knows full well the tools of the migration system that can be brought to bear against people".
"He was very good at making things hard particularly for refugees but really by extension for all migrants by limiting who could be here and by keeping detention centres open and thriving under his control," Dr Silverstein said.
"What we're really seeing is a highly racialised moment that fits in with its longer history of Australian racialisation of migrants.
"The assumption is that they're migrants, that they're here on temporary visas, which is demonising of all Arabs in Australia (and) puts forward the idea that they don't belong."
Dr Silverstein said apart from fomenting racism, Dutton's comments would have a chilling effect on the ability of refugees to voice discontent.
"People who are on precarious visas don't feel they can speak out because of their visa status. It's precarity on top of precarity."
In a rare statement, Australian Security Intelligence Organisation director-general Mike Burgess cautioned for a more judicious use of language.
"In this context, it is important that all parties consider the implications for social cohesion when making public statements," he said.
"As I have said previously, words matter. ASIO has seen direct connections between inflamed language and inflamed community tensions."
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