The Australian government has announced a crackdown on citizenship and immigration laws as it steps up its fight against terrorism, Prime Minister Tony Abbott said on Monday.

Speaking to reporters during his national security statement in Canberra, Abbott revealed Australia would amend laws that would enable the government to revoke or suspend citizenship to those involved in terrorism.

In addition, Abbott announced that Australia would appoint a national terrorism coordinator, as well as changing the way in which the country's public alert system is amended.

His comments came in the wake of last year's Sydney siege terror incident, in which three people, including the gunman, died at the end of a 16-hour hostage situation in a cafe at Martin Place.

It has since been revealed that the gunman involved in the Sydney siege, Man Haron Monis, was on bail at the time of the attack, despite facing charges regarding to the murder of his ex- wife, in addition to several sexual assault cases.

Monis had also been granted a visa to enter Australia in 1996, despite warnings from the Iranian government about his criminal history.

"When it comes to someone like the Martin Place murderer, people feel like we have been taken for mugs," Abbott said.

"Australian citizenship is an extraordinary privilege that should involve a solemn and lifelong commitment to Australia. People who come to this country are free to live as they choose, provided they don't steal that freedom from others."

"It has long been the case that people who fight against Australia forfeit their citizenship. So Australians who take up arms with terrorist groups, especially while Australian military personnel are engaged with Afghanistan and Iraq, have sided against our country and should be treated accordingly."

"We are examining suspending some of the privileges of citizenship for individuals involved in terrorism. These could include restricting the ability to leave or return to Australia and access to consular services overseas, as well as access to welfare payments."

Opposition leader Bill Shorten reacted to Abbott's announcements with caution, saying the proposed new measures need to be considered carefully.

Shorten also warned against reducing the presumption of innocence for all Australian citizens.

"The measures that Prime Minister Abbott proposed this morning deserve full and careful consideration and Labor will engage constructively with them," Shorten told reporters in Canberra on Monday.

"Given Australia's character, our history, our love of freedom, there should always be a strong presumption in favor of the liberty of individual citizens. Labor believes this presumption should only be reduced, rebutted or offset to the extent that current arrangements are proven inadequate."

"Any proposed changes must be shown to be effective for the nation as a whole and any alternative solution must deliver a superior good in terms of the safety of the community." Endi

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