The federal government will strengthen laws to crack down on groups that vilify, intimidate or incite hatred.
Prime Minister Tony Abbott outlined the move in a major national security speech on Monday.
"For a long time, successive governments have been concerned about organisations that breed hatred and sometimes incite violence," he said.
"Organisations and individuals blatantly spreading discord and division - such as Hizb ut-Tahrir - should not do so with impunity."
The government's terrorism advocacy laws would be strengthened to target "hate preachers".
"It will include stronger prohibitions on vilifying, intimidating or inciting hatred," Mr Abbott said.
He urged Muslim leaders to talk more about Islam being a "religion of peace".
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