NSW Police Commissioner Andrew Scipione says Australians will have to sacrifice some of their privacy expectations in order to stay safe from terrorist attacks and criminal activity.

Mr Scipione made the comments at a Trans-Tasman Business Circle event in Sydney. He was responding to a Fairfax Media question about how data retention laws championed by Australian authorities would affect goodwill towards police in the community.

NSW Police Commissioner Andrew Scipione. Credit:Jonathan Carroll

Data retention laws would require internet service providers and telcos to collect and store information about their customers' internet habits in order to help identify potential security risks.

Mr Scipione said it was perplexing that, as consumers, people were prepared to sacrifice their privacy in order to receive discounts and better deals but not for the sake of their safety.