The government is investigating a claim that the federal police lack power to check ID's of suspicious airline passengers until after they have boarded a flight.
The Australian Federal Police is reported to have first raised concerns about the issue two years ago.
A report into airport security has found in some circumstances officers don't have the authority to demand proof of identity documents from a person using a suspected fake ID to travel on a flight.
There are concerns the loophole allows people to fly with false identities.
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Foriegn Affairs Minister Julie Bishop confirmed on Sunrise the government is investigating and that airport security is one of their "biggest priorities".
"Wherever the AFP have asked for more powers or more legislative support for their operations we have done our very best to provide it so we are investigating this claim," she said.
"We give the AFP significant support and powers to help carry out their operations the best they can."
A submission to the aviation and airport security inquiry from 2015 shows the AFP was growing concerned about the bizarre loophole, The Daily Telegraph reports.
“The AFP can only detect the offence after the event (or if another offence is committed),” the report states.
“The AFP considers an effective preventative measure would be to enable a form of identification to be produced with a boarding pass, prior to any person boarding a flight.
“As a further preventive measure, the AFP suggests a power to request name and address of suspicious individuals identified ... within the airstream.”
Justice Minister Michael Keenan said a review into the alleged loophole is under way.