Nine people were shot dead in Munich on Saturday by German-Iranian teenager Ali David Sonboly - the third act of violence against civilians in Western Europe, and the second in southern Germany, in eight days.
Munich police say Ali David Sonboly acted alone and had no links to the self-proclaimed Islamic State group, but added that he did have mental health issues.
Speaking in the aftermath of the attack, Australia's Attorney-General George Brandis warned Australians against using the word "terrorism" too loosely as the government tries to identify possible "lone-wolf" attackers.
Senator Brandis said one phenomena that had emerged recently is the development of lone actors who self radicalise, most commonly online, and very frequently these are young men with mental health issues.
He warned it is very important to be careful in our use of language.
Caution urged on use of language
"Not every mass casualty attack is an act of terrorism. Not every premeditated act of violence is an act of terrorism," he told ABC's Insider's program.
Senator Brandis said terrorism is an act of violence committed for a political, religious or ideological cause.
"If we're going to understand this problem we have to analyse it correctly. We must be very careful in our use of language so that we don't spray the word terrorism around too loosely."
He rejected suggestions that views speculating on the role of religion in the Munich shooting should be censored.
Incoming senator Pauline Hanson posted a message on Facebook hours after the attack in Munich, singling out religion as a motivating factor.
"We’re waking up again to what appears to be another terrorism attack in Munich, German," the message read. "Let’s see which 'peace loving' religion is behind this latest attack.”
Senator Brandis said Pauline Hanson's views are shared by a large section of Australian society - and to silence those views would be dangerous.
"What we have to do is we have to engage her, we have to explain why the views that she expresses about, for example, the Muslim community are unhelpful and frankly wrong," he said.
Government launches review into lone wolf attacks
His comments come after Prime Minister Malcolm Turnbull this week asked Australia's counter-terrorism coordinator to examine how to prevent lone-wolf attacks, or those generated by lone individuals.
Mr Brandis said the federal government no longer has plans to abolish or reduce the strength of section 18C in the Racial Discrimination Act.
Former prime minister Tony Abbott scrapped plans to reform the Racial Discrimination Act in September 2014, after criticism from community groups.