The federal government is funding a half-billion-dollar program to teach immigrants Australian values, provide accommodation and help them access welfare in a bid to prevent radicalisation.

Police, prison guards and teachers will also be trained in how to identify extremists, according to the Daily Telegraph .

The program, revealed last night by the Department of Prime Minister and Cabinet, is a response to recommendations from a Commonwealth-NSW joint review into the Islamic State-inspired Lindt Café attack at Sydney's Martin Place last December.

It is hoped the program, funded at $545 million over the next four years, will prevent another such attack.

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Social Services Minister Scott Morrison said teaching English to new arrivals and encouraging them to embrace Australian values had always been provided to new migrants, but such efforts are now aimed at fighting radicalisation.

"While not primarily targeted towards countering ­violent extremism, these community grants programs do provide a second round effect to build social cohesion which is, of itself, the best ­resilience for any community, particularly a vulnerable one, to the influences of extremist and radical practices," Mr Morrison said last night.

Counter-terrorism expert Leah Farrall said the scheme was good in theory but needed to focus on vulnerable individuals.

“People [who become radicalised] feel they’re not being listened to, so pushing and talking at them doesn’t work.