Welfare payments will be stripped from people in Australia suspected of supporting terrorism under a crackdown on funding for Islamic State (Isis) fighters in Iraq and other terror groups.
The Government may also consider forcibly relocating terrorism suspects away from fellow extremists.
"The Government will introduce legislation to ensure welfare payments can be terminated for people who have been assessed as a serious threat to Australia's national security," said Attorney-General George Brandis' departmental spokeswoman.
"This measure will ensure Australian taxpayers are not financing people known to be members of, or working with, terrorist organisations or otherwise engaged in activity that would be prejudicial to the security of Australia or a foreign country."
Controversial "relocation" laws now being considered in Britain enable authorities to force terrorism suspects to move away from radicalised associates.
