Immigrants who want to become British and settle permanently in the UK will need to pass more tests to "prove their worth" to the country under new plans.
Some migrants may also have to pay into a fund towards public services and have a period of "probationary citizenship".
Ms Smith said migrants from outside the European Economic Area would be encouraged to "move on" through a system that leads to citizenship - or choose ultimately to leave the country.
The package of measures includes:
Raising visa fees for a special "transitional impact" fund
More English language testing ahead of nationality
Requirements to prove integration into communities
Increasing how long it takes to become British
The system could see migrants with children or elderly relatives expected to pay higher application fees.
