Gutted sevens star Brackin Karauria-Henry has blamed "stupid" red tape for costing him a Commonwealth Games rugby berth and hurting Australia's medal chances.

New Zealand born and raised, Karauria-Henry is struggling to understand how he could play the entire world sevens series for Australia but be prevented from playing in Delhi due to stringent eligibility guidelines.

The former Cronulla NRL back moved from Christchurch to Sydney four years ago but is paying the price for failing to lodge paperwork to prove his permanent residency.

Karauria-Henry was made aware only last week he required proof of residency.

He filled in the forms but the Australian Rugby Union was told there was no point in lodging them as the Games are only two months away.

It's not just a blow for the newly-signed NSW Waratahs centre but also Michael O'Connor's injury-riddled sevens squad.

Karauria-Henry was Australia's leading try-scorer, with 30, on the International Rugby Board's world sevens circuit and a leader in the young team which finished third behind Samoa and NZ.

"I was unaware of it and the ARU didn't know about it," he said of the more strict Commonwealth Games' eligibility requirement.

"I filled in all my forms last week but I was told on Friday there was not enough time to fast-track it.

"It's stupid. I can't see how I can play the whole IRB series for Australia but then not be eligible for the Commonwealth Games.

"I don't blame anyone, it's one of those things, but it's really disappointing."

The 22-year-old isn't the only NZ-born player prevented from playing for Australia in Delhi. Queensland-cum-Melbourne halfback Richard Kingi is also blocked for the same reason.

O'Connor said Karauria-Henry, one of just two Australians to play all eight of the 2009-10 IRB tournaments, would be sorely missed but hoped Reds youngster Luke Morahan could fill the void at centre.

"It's very disappointing, he's worked hard all year," the coach told AAP.

"He's a very influential player, is one of the leaders in our team and sets the standards in training and is very competitive."

Karauria-Henry, who made his Super 14 debut for the Brumbies this year, will continue to assist the sevens team in a four-day Canberra training camp this week.

O'Connor has bolstered his squad with Super 14 players Pat McCabe, Nick Cummins, Lachie Turner, Pat McCutcheon and Chris Alcock.

Set to finalise his 12-man team on Thursday, he is hoping injured trio Kimami Sitauti, Shaun Foley and Brian Sephania may be cleared to return following surgery.

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