EVERY move you make online, the government will be watching you.

That is, if the details of an online security paper get passed into law.



A discussion paper released by the Attorney-General's Department this morning showed that ISPs would be required to store user activity online for a period of 2 years.



The new security expansion would mean everything from social networking to emails would be monitored and stored, and intelligence agencies would be given increased access to sites such as Facebook and Twitter.



The 60 page discussion paper would increase the powers of the Australian Security Intelligence Organisation (ASIO), Australian Secret Intelligence Service (ASIS) and the Defence Signals Directorate (DSD).



If the proposed security measures pass it will be the greatest expansion of Australia's security laws since 2001 when the Howard government passed a series of security measures following the terror attack on the World Trade Centre.



The Federal Government has defended the need for intelligence agencies to have access to the internet and phone records of Australians.



"Unlike the Howard Government, the Gillard Government wants to give the public a say in the development of any new laws, which is why I’m asking the Committee to conduct public hearings," said Attorney-General, Nicola Roxon in a statement.



"National security legislation is important - but also important is the trust and confidence that Australians have in those laws."



Both Labor and the Coalition agreed there was a need to balance national security requirements with an individual's right to privacy.



"We must stay one step ahead of terrorists and organised criminals who threaten our national security," Ms Roxon said.



"At the same time, we need to have the right checks and balances in place to ensure that those who enforce our national security laws do so responsibly."



Data will be retained for up to two years and the agencies given increased access to social media sites such as Facebook and Twitter, under a suite of new proposals being considered by a Parliamentary committee.



Australians would be forced to hand over their computer passwords.



Assistant Treasurer David Bradbury said it was important for the nation's intelligence agencies to have access to information they needed to protect the nation.



"But, of course, there is always going to be an important need for us to balance that against the protection of the privacy of the individual," he told Sky News.



Senior opposition frontbencher Bruce Billson agreed there needed to be a right balance.



"The new technology, social media, the whole digital space is putting real pressure on law enforcement and on people's privacy," he said.



"Getting those new tools right for this new environment is a really tough, challenging task."



The proposals are outlined in a discussion paper released by the Attorney-General's Department for consideration by parliament's joint houses committee on intelligence and national security.



The committee has been asked to inquire into the lawful access to communications and associated data to reduce the risks to Australia's communication networks from certain foreign technology and service suppliers, and boosting the operations of Australian intelligence community agencies.



One proposal under consideration is allowing Australia's foreign intelligence services to monitor citizens overseas if an an officer from the Australian Security Intelligence Organisation (ASIO) is not available.



ASIO has been the sole agency allowed to collect data on Australian citizens.



Submissions to the inquiry are due by August 6. The committee intends holding a series of public and closed hearings.