Mr Tudge will address the Menzies Research Centre in Melbourne today to provide an update on his plans.
Overseas migration accounts for 60% of Australia's population growth, with nearly 90% of skilled workers gravitating to Sydney and Melbourne, as well as almost all of the humanitarian intake.
Mr Tudge wants to correct the "imbalance" by expanding the mix of geographical visa conditions and incentives imposed on new arrivals.
"We are working on measures to have more new arrivals go to the smaller states and regions and require them to be there for at least a few years," he said.
"In that time, the evidence suggests that many will make it their home for the long term."
Details of exactly how the requirements would be enforced remain vague, but there is some talk of pursuing a points-based incentive system.
The restrictions would only apply to about 45% of new migrants, because 25% are sponsored by specific employers and another 30% are tied to family reunions.
Mr Tudge also plans to pursue better roads and transport connections, including fast rail, to ease the peak hour crush on highways and public transport in the major cities.
As well, Canberra will work with the states to implement new infrastructure planning and population controls to claw back some of the $A25 billion ($NZ27.4 billion) a year in lost economic activity due to city congestion.
