There are also questions about whether his mother can be classified as a Hungarian citizen at all due to a law Hungary passed in 1939 declaring Jews as aliens.
Mr Frydenberg's mother,born in 1943,became an Australian citizen in 1957,and Mr Frydenberg has never sought Hungarian citizenship.
"When my mother and her sisters and her parents entered Australia after the war their status was stateless,"he told Fairfax Media.
"It is absurd to think that I could involuntarily acquire citizenship of a foreign country from a stateless mother and grandparents."