Australia moved closer to stripping dual nationals of their citizenship for terrorism offences on Friday, with a parliamentary committee recommending it be approved even for old convictions.

Canberra has passed a series of national security laws to combat concerns about Australians supporting jihadist groups such as the Islamic State group and in June put forward changes to the Citizenship Act.

The amendments are meant to extend current powers removing citizenship from nationals who join armed forces at war with Australia to those who fight for or are in the service of a designated terrorist organisation, or who are convicted of terrorism or other offences.

"This bill modernises our treason laws to deal with the new threat of home-grown terrorists," ruling Liberal Party parliamentarian Dan Tehan, who chaired the committee, told reporters in Melbourne.

"If you repudiate your allegiance to Australia and you are a dual national, you will lose your citizenship."

Tehan said the committee had made 27 recommendations, including that the stripping of citizenship for dual nationals convicted of terrorism offences should be limited to those sentenced to at least six years' jail.

It also recommended the law be expanded to retrospectively cover those previously handed jail terms of 10 or more years.

Australian Prime Minister Tony Abbott told Sydney radio station 2GB Friday it was the "strong intention" of his government to "give this law retrospective effect".

In contrast, Foreign Minister Julie Bishop said "as a matter of principle, I wouldn't support retrospectivity", although she added there could be situations relating to citizenship where such moves might be considered.

The removal of citizenship "by conduct" -- meaning no conviction is required -- should be restricted to Australians engaging in activities outside the country or who have fled overseas before being charged and brought to trial, the bipartisan committee recommended.

Other changes mooted were that the law should not apply to Australians under 14, while the crime of "destroying or damaging Commonwealth property" or other offences attracting less than 10 years' prison or that have never been used should be removed.

Critics have warned the legislative changes could be unconstitutional, but Tehan said his committee received reassurances from the attorney-general that they complied with the constitution.

Opposition Labor immigration minister Richard Marles said his party thought the recommendations "represent a sensible updating of our laws which deals with a legitimate national security concern".

Australia raised its terror alert level to high in a year ago, with two attacks since then -- the stabbing of two policemen in Melbourne and a deadly cafe siege in its biggest city Sydney.