The Australian government launched the Permanent Engagement Visa last year saying it would "strengthen" the nation's links with the Pacific.
The PEV will grant permanent residency to citizens from the Pacific and Timor-Leste chosen through a random ballot, similar to the "Green Card Lottery" seen in the US.
Those selected can apply for a visa, and up to 3,000 visas are available each round.
It's opened a major new migration pathway for Australia's closest neighbours and generated huge interest in the region, with more than 56,000 people applying.
But more than five months after applications closed, the federal government has allocated less than 5 per cent of the total visas available this round.