Federal Parliament appears likely to expedite encryption-piercing legislation ahead of the Christmas holiday period, with the powerful intelligence and security committee rapidly considering amendments to meet a sudden two-week deadline issued by the Morrison government.

The bipartisan committee is considering substantial revisions to the Assistance and Access Bill that would place additional restrictions on the new powers, allowing for an interim version of the bill to be passed while scrutiny continues of the broader package.

ASIO chief Duncan Lewis. Credit:Alex Ellinghausen

The fast-tracked process is in play after Home Affairs Minister Peter Dutton last week called on the committee to "accelerate" its efforts so the bill could be passed before December 6, when Parliament winds up for the year. Prime Minister Scott Morrison said he would "insist" the legislation be in place by the deadline.

Following hearings with security agencies on Monday — hastily convened to address the question of the bill's urgency — Fairfax Media understands the committee is considering preliminary legislation that would only empower agencies investigating terrorism plots. Labor also appears to be supportive of increased safeguards and oversight measures suggested by independent watchdog the Inspector-General of Intelligence and Security.