Prime Minister Tony Abbott has reassured coalition MPs the government doesn't intend to demonise the Islamic community with its expanded counter-terrorism laws.
But he warned there's a need to stand up to the preachers of hate and violence.
The government is drafting new laws aimed at addressing concerns about the number of Australians fighting for the extremist Islamic State in Syria and Iraq.
While critics claimed their number - said to be about 150 - was not great it would only take one person to engage in a violent terrorist attack, Mr Abbott told a meeting of Liberal and Nationals MPs and senators on Tuesday.
Australia must continue to be "a beacon of light and hope" around the world, he said, but it could only do that by being strong in the face of those who would do harm.
"We must be strong and vigilant and stand up to the preachers of hate and violence."
Mr Abbott said the government wasn't intending to demonise any particular community, but made special mention of Australian Muslims.
"There are no stronger members of `Team Australia' than the overwhelming majority of the Muslim community," he said.
Some Muslim groups have dismissed the government's need for tougher counter-terrorism law, describing the level of threat as "trumped-up".
One Liberal MP said the Islamic community in his western Sydney electorate was right behind the government on its plan for expanded security laws.
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