The Australian Defence Force will expand its role in assisting the states to respond to terrorist incidents under new changes being made by the Turnbull Government.
This strengthening of engagement will assist with pre-positioning of the ADF in response to a possible terrorist incident.
Although police were absolved of blame during a 2014 Sydney cafe seige, in which two hostages and the gunman were killed, an inquest found authorities had underestimated the threat of the hostage taker and recommended a review of several procedures.
That provision has now been removed, Monday's statement said.
"It is essential that Australia evolves its responses and countermeasures in response to the changing threat", he said.
Flanked by the Chief of the Defence Force Mark Binksin and standing in front of an inflatable boat with six heavily armed and masked special forces soldiers, Mr Turnbull said that now states needed to "demonstrate that they have exhausted their ability to defend themselves".
State governments will still decide whether they want help from the military to handle terrorist incidents.
While State and Territory police will remain the first responders to a terrorist attack, they will be able to call on military support much earlier than under the current laws, which require that states request military support only once their police capacity and capability have been exceeded - a process Turnbull referred to as "very cumbersome".
Accusing Pakistan for supporting terrorists, United States cracks down on anti-terror funding
It has conditioned the USA aid to Pakistan to conditions that the country shows satisfactory progress in fighting against terrorism.
The prime minister unveiled a raft of changes on today, including having special forces provide specialised training to local police officers.
"There would only be limited circumstances in which the niche military capabilities that we have would be required", Mr Keenan said.
"It would be quite wrong of me to start trying to re-open the issues around the the Lindt Cafe", he told ABC radio.
Defence spokesman Richard Marles says the training and embedding of defence force members is uncontroversial.
The new powers will also allow troops to help police stop suspected terrorists from leaving the scene of an incident.?
Australia's defence laws will be overhauled the smooth the way for soldiers to be deployed to assist local police dealing with terrorist threats.
In practice, this means that it will be easier to deploy the Defence Forces in response to domestic terror incidents.
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