Security agency ASIO has confirmed it has started seeing a drop in the number of Australian youngsters pursuing violent Islamist extremism.

The agency has told a hearing in Canberra that the number of children and teens being drawn to jihad on the wave of the so-called Islamic State’s previous success in the Middle East has passed its peak, though it warns Islamist terrorism remains a significant threat.

And it has warned of a rise in extreme right-wing ideology that may be attracting young people in a similar way to Islamist radicalism.

ASIO’s acting head Heather Cook made the revelations during a hearing of the national security legislation watchdog in Canberra, which is reviewing laws on the trials and sentencing of children on terrorist offences.

The Independent National Security Legislation Monitor, James Renwick, SC, flagged the need to carve out exceptions for children in tough mandatory sentencing laws for terrorism cases.