Mr Wilson made the comments at a free speech forum in Sydney, which Attorney-General George Brandis was scheduled to address.
Mr Brandis cancelled his appearance at Free Speech 2014, two days after the announcement of the proposed policy, which would require telecommunication companies to record users' phone and internet activity.
He was due to speak on 'free speech reflections'.
Mr Wilson told SBS World News he was disappointed at his cancellation.
“He obviously wanted to talk about issues around free speech and he made it clear that he thought the events of the past 48 hours would completely consume discussion on that," he said.
"I understand that he’s intending to do so in the future."
Listen: Human Rights Commissioner Tim Wilson speaks with Stephanie Anderson.
Addressing the forum, Mr Wilson said the anti-terror measures would have a "chilling effect" on free speech.
"In a previous age of relatively centralised mass media, the government was able to instil a form of control," he said.
"The capacity for government to now do so has been severely compromised by technology and the internet. Governments are just on the back foot. They are simply incapable of assessing the content generated by billions of creators.
"Mass surveillance through data retention may have a chilling effect on free speech."
Racial Discrimination 'could have been fixed'
Mr Wilson also slammed the government's dumping of proposed changes to the Racial Discrimination Act, saying "it could have been fixed".
"The current design of the law is too opaque and includes subjective tests to justify restrictions on sensitive subjects," he said.
"An important lesson from the government's decision to shelve this important process is that discussions around free speech must be inclusive... In my opinion, the problem with the Act is that it establishes legal recourse for offensive speech on a subjective test that does not apply to everyone.
"What is good for one must also be good for all."
He announced he would be undertaking a Rights and Responsibilities tour of Australia to hold discussions on free speech.
The tour will start with a forum in Adelaide on September 2.
Greste's imprisonment 'a timely reminder' on free speech
Mr Wilson also used the forum to draw attention to the plight of Al Jazeera journalist, Peter Greste.
He said the consequences of the restrictions on free speech were human.
“Recently Australian journalist Peter Greste was imprisoned in Egypt on trumped up charges of aiding terrorists and endangering national security," he siad.
"His imprisonment was a timely reminder that the liberal human right of free speech was designed to protect the right of the individual to speak out, even when their views are unpopular with some, particularly those in position of power.”
Greste's brother Andrew also addressed the forum, saying that his brother's professionalism may work in his favour during an appeal.
He said his brother did not have an axe to grind or agenda to push, and urged other journalists to follow his example.
"When journalism gets sloppy, you lose the moral high ground," he said.
"When professional ethics slip, it gives those who wish to lock up journalists an excuse to do so."
Greste, Egyptian-Canadian Mohamed Fadel Fahmy and Egyptian producer Baher Mohamed were convicted in June of aiding the blacklisted Muslim Brotherhood and spreading false news that portrayed Egypt as being in a state of "civil war."
Greste and Fahmy received seven year terms, while Mohamed was jailed for 10 years.
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