The Federal Government is introducing new laws that will see Australians stripped of their welfare benefits if they are identified as a threat to national security.

Currently welfare payments can only be cancelled if the recipient no longer meets social security eligibility rules.

The Government says the new measures will ensure that Australian taxpayers are not financing members of terrorist organisations.

"Now this is a new power that will be used with discretion but nevertheless we do believe that, particularly for people who are heading overseas, there should be the ability in the hands of the Government to remove social security benefits from them," Prime Minister Tony Abbott said on Saturday.

"The last thing we want is terrorism tourism on the taxpayer and there will be no terrorism tourism on the taxpayer as a result of these measures that we will be putting before the Parliament.

He says one Australian engaged overseas with a terrorist organisation was "one too many".

"We do know that some high-profile cases of Australians who have gone overseas to fight with various terrorist organisations, one gentleman in particular who has become absolutely notorious for the most bloodthirsty work as part of his activities with terrorist groups in Syria and Iraq, has been on social security."

Social Services Minister Kevin Andrews said the Government was acting on the advice of security agencies.

"Welfare should be available for people who need it. It's not for going overseas and engaging in terrorism. I'll state that again: it's not for going overseas and engaging in terrorism."

Mr Abbott says the new powers will be used "sparingly".

"But it will certainly be used rigorously against anyone who we think has gone overseas to become involved with a terrorist group," he said.