Malcolm Turnbull insists Australians won't be under mass surveillance after state and territory leaders agreed to a beefed-up facial recognition system.
Premiers and chief ministers on Thursday gave their support for a range of tough new national security measures at a special meeting in Canberra.
That included sharing information for an online national face-matching service that will give police and security agencies in all jurisdictions immediate access to photos from passports and visas plus driver licences.
The system will be used to instantly identify people who are "suspects or victims of terrorist or other criminal activity", which now can take up to 10 days.
"It's really taking a resource that has been accessed for years and years and making it available in a 21st-century manner," the prime minister told reporters.
"Most Australians would assume it would be accessed in this way now but it hasn't been."
Scanning live CCTV isn't part of the new system, but police wanting to identify someone in such footage can get access in real-time.
The data could also be accessed by private operators - stadium or airport operators, for example - but only for a "lawful purpose" and with government approval and supervision.
Whether that could include for cases of petty theft in shopping centres remains unclear.
"It doesn't involve mass surveillance," Mr Turnbull said.
Queensland Premier Annastacia Palaszczuk says the measure will require legislation in her state and some other jurisdictions.
She hopes it will be up and running in time for next year's Commonwealth Games on the Gold Coast.
Mr Turnbull described the COAG meeting as very productive and one that reached decisions with real unanimity.
The leaders agreed to enhance the existing pre-charge detention regime at Commonwealth level, to allow terror suspects to be held without charge for up to two weeks - as is already the case in NSW.
The federal government is confident the proposed law changes comply with the constitution, having previously hit some legal roadblocks.
"It is important that people who have been arrested can be detained while evidence is being gathered. This is a very important refinement," Mr Turnbull said.
Victoria's Labor Premier Daniel Andrews took aim at those who will focus on the "notional reduction" in peoples' rights and liberties from these measures.
"We are called to act and we are called to make the changes necessary to give to law enforcement and our security agencies everything they need to keep Australia safe," he said.
There was also agreement on new Commonwealth offences for terrorism hoaxes and the possession of the instructional terrorist material.
Mr Turnbull said both will carry serious penalties.
On top of that, the states and territories agreed to expand the phone-based national emergency alert warning system, which is now being used in natural disasters, to make it available during a national security incident.
The prime minister will host another special counter-terrorism COAG meeting next year.
