The Federal Government is looking at changing the English language requirements for people seeking permanent residency.

New figures show around 1 million people in Australia cannot speak basic English.

Currently, the spouses, children and extended families accompanying up to 190,000 permanent migrants each year do not have to prove they can understand English.

Multicultural Affairs Minister Alan Tudge says the fact that “close to a million” Australians now do not speak the national language is a “concerning situation”.

“That's not in the interests of those migrants but nor is it in the interests of social cohesion, because if we can't communicate with one another, it's very difficult to integrate,” he said.

Mr Tudge said that with up to one in three people unable to speak the national language in some suburbs, Australia must be careful not repeat the experience of some European countries in creating “parallel communities”.

“Australia's multicultural model has been built on integration where communities merge together, where we play together, where we work together,” he said.

“But in order for that to occur you do need to have a common language.”

The Government is looking at options including mandatory language classes for people seeking permanent residency, or even a new, customised English test.

The changes seek to assess “conversational” or “primary-school” level English, the Prime Minister said.

The Coalition failed to achieve controversial changes to citizenship laws last year, which would have required new citizens to pass a university-level English test.

A new, watered-down version of the previous bill is expected to be presented to Parliament soon.