Police in NSW will receive greater powers to shoot terrorists while riot squad officers will be armed with assault rifles under proposed changes announced on Thursday.

Premier Gladys Berejiklian and federal Attorney-General George Brandis said their governments would accept all recommendations arising from the inquest into the 2014 Lindt cafe siege.

The NSW government in the coming weeks will introduce legislation giving police officers extra legal protection to shoot during more prolonged incidents such as the Lindt siege, once they have been declared as terrorism by the police commissioner.

"We will have the strongest laws in the nation and possibly the world," Ms Berejiklian said in Sydney. The announcement came three days after the siege in Brighton, Melbourne in which gunman Yacqub Khayre killed Nick Hao before being shot dead by police.