The changes would allow authorities to cancel, revoke or refuse passports for national security or terrorism purposes.
Public Safety Minister Steven Blaney and Citizenship Minister Chris Alexander made the announcement on Thursday at Montreal's Pierre Elliott Trudeau International Airport.
The measures were included in the Conservatives' budget bill, which was introduced Thursday.
Blaney and Alexander also said people who have their passports revoked or cancelled will have to wait 10 years before applying for another.
The ministers added that the changes would allow Federal Court justices who preside over passport proceedings to protect information from being disclosed but to be able to use that information in reaching their decisions.
Alexander said the government is sending a "very strong message."
"We won't allow the Canadian passport to be used as a tool by terrorists to carry out unspeakable acts of violence, criminal acts, and Canada will not tolerate this type of behaviour," he told a news conference at the airport.
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