The ABC's decision to allow a former terror suspect to air his views runs counter to the government's work in countering the threat of terrorism, Foreign Minister Julie Bishop says.
Ms Bishop rejected Opposition Leader Bill Shorten's statement that the government was attacking the independence of the ABC.
"Not at all," Ms Bishop told reporters before the Liberal Party federal council meeting in Melbourne.
She said the ABC must uphold the principles of its charter.
"The ABC has admitted it made an error of judgment," she said.
"It runs counter to all that we are seeking to do to protect Australians from terrorism and it runs counter to our programs to deradicalise young people and counter violent extremism."
The ABC has admitted it made an error of judgment by allowing Zaky Mallah, jailed for threatening federal government officials in 2003, to speak on its Q&A program on Monday.
Ms Bishop said it was up to the ABC to determine what should happen.
"But I think the Australian public would expect something to occur as a result of this grave error of judgment that the ABC has acknowledged."
Mr Shorten says the ABC made a mistake but is independent of the government.
"It is not a propaganda arm of government," he said.
"Whilst I think it is right to be critical of the Q&A audience proposals and who they put in the audience, I am not satisfied that it warrants the full-on attack against the independence of the ABC."
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