Shooting rules could be relaxed for spies

Australian spies could soon be able to shoot enemies who pose a threat to hostages and innocent bystanders during undercover operations abroad.

The federal government wants Australian Secret Intelligence Service to be able to use "reasonable force" to protect other people caught up in overseas missions, rather than just in self defence.

ASIS officers have been able to use their weapons to keep themselves safe since 2004.

They are also able to draw their firearms to defend other ASIS staff and people co-operating with the agency.

Cabinet minister Paul Fletcher, who introduced the proposed laws to parliament on Thursday, said the security environment had rapidly changed in the past 14 years.

"Challenges to Australia's national security require ASIS to more frequently operate in hazardous circumstances overseas - especially against increasingly sophisticated and ruthless armed terrorist groups," he said.

"Enhancing the protection of ASIS officers conducting operations in the name of Australia, including rectifying gaps and shortcomings, is required in the near term."

Along with protecting hostages and bystanders, the proposed powers would also allow ASIS officers to use their weapons to keep "uncooperative" people safe from immediate danger.

Mr Fletcher said the existing legislation was leading to unintended and unsafe situations for ASIS officers and others.

"The act currently prohibits an ASIS officer from using a weapon in defence of an innocent person who is threatened by a terrorist or kidnapper, even where this threat is present in front of the ASIS officer," he said.

"The proposed amendments will allow an ASIS officer confronted with this situation to act appropriately in defence of the innocent person."

Meanwhile, legislation to establish the Office of National Intelligence passed parliament on Thursday.

The new agency, which stems from a 2017 review of Australian intelligence, will aim to better co-ordinate national security advice.