A parliamentary committee is reviewing counter-terrorism powers that allow Australia's intelligence agency to detain and coercively question people.

While ASIO has never sought to use them, the country's security law watchdog has repeatedly called for the powers to be abolished.

The Independent National Security Legislation Monitor earlier this month labelled them unnecessary and not proportionate to the threat of terrorism.

"It is time to accept that the capacity to secretly and immediately detain persons whether or not they are implicated in terrorism is a step too far," former judge Roger Gyles QC wrote in his report.

Parliament's joint committee on intelligence and security said on Wednesday it had begun a review of the effectiveness and implications of the powers.

Liberal MP and chair Andrew Hastie said while strict safeguards are built into the existing legislation, the extraordinary powers deserve close scrutiny.

"The committee will use its review to examine the ongoing effectiveness of ASIO's special powers in the fight against terrorism and whether the existing set of safeguards gets the balance right between security and individual liberties," he said in a statement.

The committee will take into account Mr Gyles' recent findings.

The measure was proposed in the aftermath of the September 11 attacks and introduced in 2003 amid much controversy.

It had an initial sunset date of 2006 but that has been extended.

Mr Gyles recommended the powers be repealed or cease when the current period ends in September 2018.