The Abbott Government is being accused of using terrorism fears to distract Australians from its contentious budget.

In recent weeks the Coalition has outlined new measures to crack down on extremist threats, including legislative changes to target Australians who travel overseas to fight with terrorist organisations.

Labor senator Sue Lines says the Government seems determined to only talk about terrorism and not its tough budget cuts.

"It's [the Government] hyping it up, it's invented the term Team Australia - you're either in the team or you're out of the team," she said.

"And it's looking for opportunities in the media and elsewhere to try and scare the Australian public and to distract everyone from the budget."

Immigration Minister Scott Morrison says he is very disappointed by Senator Lines's comments.

"If she doesn't believe the IS involvement in Iraq and Syria presents a genuine and real threat to Australia then she's a muppet," he said.

"That's just ridiculous and I think she should be hurled into line by her leader and the debate returned to the adults."

Opposition Leader Bill Shorten said national security should be above politics and Labor would work with the Government to tackle the threat of terrorism.

"Individuals make comments. I've spoken to Senator Lines. Our position, Labor's position, is that we will work in the best interests of this nation and our stability and security. We will continue to do so," he said.

Mr Shorten has previously given broad support to the proposed legislative changes, but said Labor would wait to see the legislation.

Senator Lines said her party would take a calmer and more reasonable approach than the Coalition.

"I think Labor will be sensible in this regard, because what Labor doesn't do is we don't scaremonger," she said.

"It's not the game we play, and we are about sensible policy and so obviously we do need to see the detail of that policy."

The Government says about 160 Australians are fighting with or assisting terrorist groups in the Middle East.

In Parliament on Wednesday, Mr Abbott revealed that counter-terrorism units had arrested a "person of interest" after beginning operations late last week at international airports in Sydney and Melbourne.

Mr Abbott told Question Time the new units were part of the Customs and Border Protection Service.

Defence Minister David Johnston also said Australian forces were in a "high state of readiness" should the Government decide to commit RAAF aircraft to the US airstrike campaign against the Islamic State (IS).

Senator Lines said she wanted to make sure that Australia was secure, "but I think you can do that without grandstanding and I think responsible governments get their legislation out there and have a sensible conversation".

"What we've seen this Abbott Government do unfortunately, fairly successfully, is it's very good at demonising, but it then doesn't have a plan to follow through and that's partly why it's in trouble with its budget," she said.

"It's good at the scare tactics but it's not good at good policy and that's what we're seeing now."

Senator Lines's comments have been echoed by fellow West Australian Labor MP Melissa Parke, who tweeted on Wednesday: "Team Australia is a moronic ripoff from 2004 'Team America: world police' parody film. Intolerant nonsense rhetoric, unbecoming of a PM."

Ms Parke was unavailable for comment.

Opposition frontbencher Kate Ellis has distanced herself from Senator Lines's comments.

"Everyone is entitled to their own opinions. I certainly wouldn't have voiced it in that manner," she said.

"We have made clear that national security of course needs to be the first priority of a government, but this is a dud of a budget and they cannot escape from that fact."