Intelligence agencies estimate 35 Australians have died while fighting for terror group Islamic State in Syria and Iraq.
Earlier estimates put the death toll around 20.
Prime Minister Tony Abbott said latest advice from security agencies also indicated 110 Australians were fighting with groups such as the Daesh death cult in the Middle East.
Well over 150 Australians were known to be providing through financing and recruitment.
"This is an unprecedented national security challenge," Mr Abbott told parliament on Wednesday.
He said the government didn't want to play politics on the issue.
"We know instinctively that anyone who raises a gun or a knife to an Australian because of who we are has utterly forfeited any right to be considered one of us," he said.
The government wants to strip Australian citizenship from dual nationals who engage in terrorist activities.
Labor is yet to indicate its stance on the measures, Mr Abbott said.
"In the face of this unprecedented threat to our national security, this government is taking every reasonable measure to keep the Australian people safe," he said.
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