The federal government is seeking to beef up cyber security across the public and private sectors.
Authorities say there are more than 2000 reported serious cyber incidents each year, but many more go unreported.
New laws to go to federal parliament later this year will bring in fines of up to $250,000 to force telecommunications companies to take proper steps to head off cyber attacks and ensure the safety and security of stored and transmitted data.
The bill obliges about 1600 telcos and related companies, which earn about $43 billion a year, to protect their networks from unauthorised access and interference.
They must notify security agencies of key changes to networks and management systems that could adversely affect their ability to protect their networks.
Attorney-General George Brandis said fines and enforcement powers would only be used as a last resort where co-operation could not be achieved.
