The department had earlier expressed concern about Snoop Dogg's criminal record but took into account the fact that he had travelled to Australia three times without incident.
"In making this decision, the department weighed his criminal convictions against his previous behaviour while in Australia, recent conduct - including charity work - and any likely risk to the Australian community," the immigration department said in a statement.
"We took into account all relevant factors and, on balance, the department decided to grant the visa," the statement said.
It said the rapper, whose birth name is Cordozar Calvin Broadus Jr., has committed to doing charity work with at-risk youth during his visit to Australia.
"Mr. Broadus will need to abide by Australia's laws and he will be formally counselled before his arrival about his visa conditions and our expectations relating to his conduct," the statement said.
The rapper's Australia tour with Ice Cube and Thugs-N-Harmony is due to kick off in October.
Snoop Dogg visited Australia in 1998, 2006 and early 2007 without incident. He withdrew a visa application last May after failing to pass the character requirements one month after pleading no contest to gun and drug charges in the United States.
