Lebanese Australians have expressed fury over a leaked federal government document that singles them out as prone to extremism, calling it "dangerous and divisive".

The draft cabinet document obtained by Fairfax Media says Australia's Lebanese community is the "most prominent ethnic group amongst Australian Sunni extremists".

It says the Australian "extremism landscape" has been significantly influenced by the refugee intake, pointing in particular to the Lebanese people who came under the humanitarian program between 1975 and 1990, and subsequent family migration.

Most were from "the poorer and uneducated Lebanese Muslim population", the document says.

"Consequently, this led to the transportation to Australia of a Sunni community which included elements who already held extremist beliefs or who were more highly receptive to extremist messages," it says.

There have been instances of extremist violence within this community although their activities more commonly relate to "the provision of ideological or political support and/or fundraising".

The Lebanese Muslim Association expressed its "utmost disappointment" with the document, condemning the suggestion the Lebanese community is more prone to extremism.

"This language betrays a deep misunderstanding of the Muslim community and the process of radicalisation," the group said in a statement.

"These assumptions are dangerous and divisive, and largely undermine the effort to maintain and establish social cohesion. Painting one community this way only further isolates and vilifies the Muslim community."

The association's president Samier Dandan said the Lebanese community made a valuable contribution to Australian society and the document would only exacerbate community tensions.

Michael Kheirallah, chairperson of the Victorian Lebanese Community Council, said he was shocked the government had singled out one religious group.

"I think 99 per cent of Sunnis are integrated … and the majority reject extremism and terrorism," Dr Kheirallah said.

The Lebanese community was no different to any other migrant group and while there was a small number of people who did not integrate, the vast majority had settled well, he said.

"I don't know where they get this information from, that some are good, some are bad in the Lebanese community," he said.

"These comments will just make the Lebanese community feel more marginalised. This is not going to help with integration. It will make some people feel uncomfortable."

Prime Minister Malcolm Turnbull and Immigration Minister Peter Dutton say they have not see the document, which is marked "Sensitive: Cabinet".

Labor has described the document as "borderline racist".

The document suggests new arrivals under the humanitarian program could face much greater scrutiny and be denied direct access to permanent residency under a swathe of radical reforms.

It says settlement services at the time when the majority of Lebanese muslims were arriving were of an "informal nature". The lessons learned from the Lebanese experience had informed and improved settlement services.

Adam Gartrell and Beau Donelly

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