Attorney-General George Brandis is reminding telcos they have a national security obligation to retain the metadata of their customers for two years.
The controversial measure came into force on Tuesday but some phone and internet providers say they are not ready to comply with the regime.
Metadata includes incoming and outgoing caller identification, the duration of calls and their times and dates, as well as email addresses, sizes and times.
Communications Alliance chief John Stanton says many providers are still waiting to hear from the government about whether their implementation plans have been approved and when some of the $130 million in subsidies will be distributed.
Senator Brandis says the telcos have an "important national security obligation".
"We do frankly expect the industry to assume a large part of this burden but the government is assisting," he told ABC radio.
Senator Brandis insisted the issue had been very thoroughly discussed with the industry.
Telcos have 18 months to apply for an extension.
Liberal Democrats senator David Leyonhjelm said the metadata laws were a "crock" right from the start.
"The danger is that it will be hacked and everyone's metadata will be over the internet," he told reporters in Canberra.
The senator predicted the cost will be passed on to consumers in higher internet fees or taxes.
"Somebody's got to pay for stupid ideas like this," he said.
Independent senator Nick Xenophon said the laws had turned into a "mega-mess" where the intention to keep Australia safe probably won't be met.
Greens Leader Richard Di Natale wasn't surprised to hear some in the industry are not ready.
The media union has condemned the laws as a threat to press freedom, arguing journalists had an ethical obligation to protect confidential sources.
"The new regime will circumvent these ethical obligations and allow government agencies to identify and pursue journalists sources, including whistleblowers who seek to expose instances of fraud, dishonesty, corruption and threats to public health and safety," it said in a statement.
