There will be a strong presumption against granting bail or parole to anyone connected with terror offences under a deal struck between commonwealth and state governments.
Prime Minister Malcolm Turnbull brokered a deal on the hardline reforms ahead of a meeting with state and territory premiers on Friday, where national security is set to dominate talks.
"We must be faster, smarter, more agile, more responsive than those who seek to do us harm," he told reporters in Hobart.
"If you have someone who has terrorist sympathies and who has a propensity to violence, every day they are not on the street is a good day."
The national crackdown will extend to anyone deemed to support or have links to violent extremism or terrorism.
The agreement falls short of a proposal by Victorian Premier Daniel Andrews to have domestic spy agency ASIO and federal police to help state parole boards decide on releasing criminals who pose a terror threat.
Mr Turnbull said federal police and intelligence officers already fed information on convicted terrorists through to parole boards.