The executive order signed by United States President Donald Trump has suspended migration and refugee resettlement of citizens of seven countries in the Middle East and Africa.
The federal government has now confirmed, like Britain and Canada, it has secured an exemption for Australian dual nationals wishing to travel to America.
Among them is 15 year-old Pouya Ghadirian who was due to attend "space camp" in the US.
The Victorian schoolboy holds Iranian citizenship by descent, and says when he visited the US Consulate in Melbourne this week he was denied an entry visa.
"It's not a nice feeling, having done nothing wrong, being told that you can't enter the US just because - even though I was born in Australia - you have the passport of another country. What you would expect having an Australian passport is that you can use it where Australia has diplomatic ties, so it's a bit strange and annoying for a different country to devalue an Australian passport."
But it's likely his trip will go ahead after the Prime Minister confirmed Australians should not be affected by the ban.
"Australian passport holders, regardless of their place of birth or whether they're dual nationals, or whether they hold another passport, will remain welcome to come and go to the United States in the usual way."
Malcolm Turnbull is standing firm in his refusal to criticise the policy, even as the leaders of Canada, Germany, Britain and The Netherlands spoke out against it.
Speaking on Sky News, Mr Turnbull said he is working in the interest of the Australian people.
"My job, as prime minister of Australia, is to advance the national interest of Australia and protect the interests of Australian citizens. That's my job. And so when I need to give frank advice, fearless advice to the United States government, I do so privately."
Some media reports suggest the government has remained silent on the issue out of fear it may compromise a deal struck with the US to resettle refugees from offshore processing camps on Nauru and Papua New Guinea.
The agreement was reached with the US government under Mr Trump's predecessor Barack Obama, and the government says the new president has vowed to uphold it.
In a television interview on Sky News, the Immigration Minister Peter Dutton was asked whether it had influenced the government's position.
(Reporter) "But you don't want to jeopardise them by having a crack, is that right?"
(Dutton) "I want to get people off Nauru and Manus, there's no secret about that. Labor put people on Nauru and Manus, we've tidied up the mess of border protection, we've secured our borders, now we want to get, as a priority women and children off Nauru."
The federal opposition and the Greens have voiced their opposition to the migration restrictions.
Shadow Attorney-General Mark Dreyfus says the prime minister is taking the wrong approach.
"You're left wondering what happened to the old Malcolm Turnbull. The old Malcolm Turnbull would have spoken up here. But now we have a Prime Minister who is basically an empty space. Someone that's not prepared to say anything. Not prepared to stand up for Australian interests and not prepared to tell our friend and ally, the United States, when they are going down the wrong path. This is really important. Some moral leadership is needed here. France, the United Kingdom, Germany, they've been prepared to say something."
Labor senator Sam Dastyari, who was born in Iran - one of the countries affected by the executive order - says the government should speak out.
"They should today condemn it, the way in which other European leaders have condemned it, the way in which Theresa May's condemned it, Justin Trudeau. They were still prepared to stand up to their values and speak out against the ban. The Canadian government who has more business dealings, trade dealings and the longest continuous borders in the world with America, was prepared to speak out and be strong."
But Peter Dutton says Malcolm Turnbull's response has been appropriate.
"I think the prime minister has taken a responsible stance in his public comments about a very trusted ally, a very important ally for the future of this country, and ultimately it's not the responsibility of the Australian prime minister to comment on US domestic policy."
The executive order banning migration from Iran, Iraq, Libya, Somalia, Sudan and Yemen is due to expire within 90 days from when it was signed.
Nationals of Syria have been banned from entering the US indefinitely.