A new terrorism alert system and tackling family violence will be top of the agenda for the Council of Australian Governments meeting.
Prime Minister Tony Abbott met state and territory leaders on Wednesday for an informal retreat in Sydney looking at the way in which various levels of government co-operate and how to fund services into the future.
But a formal COAG meeting - the 40th of its kind - will be held in Sydney on Thursday.
The leaders will be briefed on a revised national terrorism threat advisory system.
The current system has four public alert levels: low, medium, high and extreme.
The public alert level has been at "high" since September 2014 on advice from spy agency ASIO in the wake of dozens of Australians supporting Islamic State's extremist activities.
The new system is understood to have five levels - not expected, possible, probable, expected and certain - considered a clearer way of indicating the threat of an attack.
COAG will also be briefed on the current threat environment by security agencies and the role of the new commonwealth counter-terrorism co-ordinator Greg Moriarty.
The leaders will discuss ways to address domestic violence and the national ice drug strategy.
The national ice task force will present its interim report following a series of community forums and advice from experts.
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