Addressing a protest in Sydney on International Human Rights Day, Keysar Trad, from the Islamic Friendship Association, called on Federal and State governments to repeal the new laws and safeguard basic human rights.
"This is Australia and we must defend out freedoms," Mr Trad told a gathering of about 100 people outside the CBD's Town Hall.
"If this is not a police state now then I don't know what is."
The Commonwealth's sweeping new counter-terrorism measures officially became law on Wednesday.
The laws allow for the first time terror suspects to be detained without charge for up to 14 days as well as controls on their movement and communication for up to 12 months.
They also update sedition laws, give police tougher stop, search and seizure powers and allow greater use of security cameras.
Indigenous social justice
Ray Jackson, from Indigenous Social Justice Association, said the Federal Government's anti-terrorism laws stripped Australians of fundamental human rights, including the right to protest.
"These laws are intended to stop us (Aborigines) protesting at the Commonwealth Games in March in Melbourne. They give them the power to come in the weeks before it and lift out those who they consider to be a threat," he said.
"But they cannot stop us having a voice, if it comes to it we will fill their jails."
It was time for Australians to stand up to the government and fight for their own their civil rights, said protest organiser Luke Deer.
"The Howard government, with the cooperation of ALP State governments, has launched a campaign of terrifying intimidation directed against Muslims, trade unionists and anti-war activists," Mr Deer said in a statement.
Stolen Wages
In protests across Australia, people also called on governments to support the recovery of wages stolen from Aboriginal workers.
In past decades the Queensland and New South Wales Governments withheld the wages of many Aboriginal workers in trust accounts.
Researchers say the wages, savings and entitlements due to the workers and their families, could total more than $500 million dollars in Queensland alone.
The Australian Democrats have called for a Senate inquiry into the issue.
Deputy Democrat leader, Andrew Bartlett, has called it one of the
Australia’s greatest industrial scandals.