Victorians who have never faced criminal charges could have their rights restricted if they are deemed a potential terror risk under a legal crackdown.
A expert panel led by former Chief Commissioner Ken Lay, and former Supreme Court of Appeal Justice David Harper will review Victoria's current terror laws.
In announcing the review, Premier Daniel Andrews said "nothing is off the table" and reforms could include curfews and GPS tracking people who have not even been charged and internet restrictions on suspects.
Mr Andrews admitted some of the moves would not be "popular".
"If curbing the rights of a small number of people is what's required to keep Victorians safe then I won't hesitate to do it," he told reporters.
The panel will look at what can be done during all stages of the justice system.
It will also look at the online recruiting techniques of terror groups and provide advice on barriers to police responses to terrorism.
Mr Andrews said the government's reforms would have to be mindful of alienating at-risk groups.
"We are not looking to further radicalise anybody," he said. "We understand our diversity is a great strength, our diversity is a precious asset and we need to be very careful and mindful to be respectful in this.
"But if you pose a threat, you're not an agent of faith, you are not somebody we ought to be afraid of dealing with."
Opposition leader Matthew Guy criticised the government for starting another review saying it should have already implemented recommendations from previous justice reviews that would have strengthened the system.
"If you're going to have another review at least make sure that the ones you already have, you've implemented," he told reporters.
Greens MP Colleen Hartland said the review should work with the communities it will most affect.
"Let's not sacrifice people for a law and order crackdown," she told AAP.
The review comes after Melbourne terrorist Yacqub Khayre killed an apartment worker and held a woman hostage before being killed in a hail of police bullets earlier this month.
Khayre was acquitted of a 2009 terror plot but was sentenced to jail over a 2012 home invasion.
He was on parole and participating in a de-radicalisation program when he launched his Brighton attack.