Spies who leak sensitive information will face tough new penalties of up to 10 years' jail and internet firms could be forced to store customers' data for up to two years under sweeping national security reforms.

Prompted in part by the leaks from renegade US intelligence contractor Edward Snowden, the Abbott government will on Wednesday introduce legislation clamping down on intelligence officers who leak to journalists, lawyers and other members of the public.

Putting an end to leaks: Government to introduce sweeping national security laws. Credit:Greg Newington

Separately, Attorney-General George Brandis has given his strongest hint yet that the government will move ahead with controversial ''data retention'' laws.

This would mean basic records of internet communications such as emails and Skype calls would have to be stored by providers for up to two years to help intelligence and law enforcement agencies carry out investigations and prosecutions.