Australia's intelligence community is proposing the biggest shake-up in more than a decade.

On the wish list is a plan to force telecommunications providers operating in Australia to retain users' phone and internet data for up to two years.

Other plans include allowing security agencies to get more access to social media sites like Facebook, and expanding powers for ASIO agents.

The ideas are in a discussion paper written by the Attorney-General's Department for a parliamentary joint committee looking at reforms to national security legislation.

Greens Senator Scott Ludlam says the proposals are deeply worrying.

"I think it's unjustified. Australians should have a right to privacy online," he said.

He says the powers of security agencies have steadily increased since 2001, and they should be wound back.

"Firstly, we will see an unwarranted expansion of security agencies and other agencies and the second thing we will see is the phone companies and internet forced to retain all of your private data for a period of years so it can be gone back over," he said.

Attorney-General Nicola Roxon has emphasised the Government has not yet made any decisions about the new powers.

She says the legislation will also strengthen privacy safeguards.