Terrorism offenders will soon face a more tailored set of checks and restrictions after they complete their jail time.
Laws passed in 2016 allowed them to be kept in jail beyond their sentence if they were deemed an unacceptable risk.
Under changes introduced to federal parliament on Thursday, if an application for continued detention is rejected, a bid can then be launched for an extended supervision order.
Attorney-General Christian Porter said high-risk offenders released into the community under the new scheme would be subject to close supervision in proportion to the level of risk they posed to community safety.
"Extended supervision orders will allow supreme courts to impose tailored supervisory conditions specific to the risk posed by the terrorist offender if released into the community, where the court is not satisfied that continuing detention is appropriate to prevent that risk," Mr Porter said.
While control orders are available, they can only be made by federal courts and provide for a limited range of possible conditions.
Under an extended supervision order, a Supreme Court may impose any conditions it considers would protect the community from the "unacceptable risk of the offender committing a serious terrorism offence".
Mr Porter said the world had learned from the 2019 London Bridge and 2020 Streatham attacks in the UK convicted terrorist offenders can pose a very real threat to the community at the end of their sentence.
"With several convicted terrorist offenders due to complete their custodial sentences of imprisonment in the next five years, the need for effective risk management measures to keep our community safe is greater than ever," he said.
Meanwhile, parliament passed a bill on Thursday enabling Australian citizenship to be stripped from terrorists.
A number of safeguards were put in place including a public interest test, meaning the minister making the decision must consider such things as the likely impact on dependents and a person's connection to Australia.
The offences for which a dual citizen may lose their citizenship include terrorism, treason, sabotage, espionage and foreign interference.