Immigration Minister Peter Dutton could be given a greater role in coordinating counter-terrorism policy among changes to national security which includes military intervention in terror incidents.
Federal cabinet on Tuesday is expected to discuss an overhaul of national security coordination following a review of the intelligence community.
It was unclear on Monday whether cabinet would endorse the creation of a UK- style Home Office or make a more modest change to ministerial lines of responsibility for key agencies such as ASIO and the Australian Federal Police.
Malcolm Turnbull held discussions with British counter-terrorism officials - who operate under the Home Office - in London last week, telling reporters afterwards it was "no time for set and forget" when it came to national security policy.
On Monday, announcing law changes to make it easier for Australia's military to help police deal with terror attacks, the prime minister said again it was important to stay ahead of terrorists.
"We have to ensure that every resource we have - legislative, military, police, intelligence, security - is always at the highest standard and able to be brought to bear to keep Australians safe," he told reporters in Sydney.