Prime Minister Malcolm Turnbull said the Australian Defence Force is set to enhance powers to tackle domestic terror attacks in the future.
An overhaul of terrorism laws will help the military to assist local police dealing with terrorist threats, he said on Monday.
Under the proposed law amendments, the Australian government would be able to call for military assistances at any time if a "terror incident" has been declared, Turnbull elaborated.
He stressed the responsibility of dealing with future attacks would also remain on the police, but the military could provide supports.
A local inquiry showed that the Australian police failed to respond quickly enough to end the central Sydney cafe siege in December 2014, which has been regarded as Australia's deadliest incident launched by ISIL attackers.