Moderate Muslims should join "Team Australia" to combat the homegrown threat of Islamic extremism, Tony Abbott has urged.

Continuing his focus on national security, the Prime Minister met about 20 key Muslim community leaders in Western Sydney yesterday over growing concerns about the risk posed by 150 Australian citizens returning home after fighting in Iraq and Syria with the Islamic State terror group.

The Government wants to beef up anti-terror laws to allow police and security agencies to detain, question and prosecute Australians involved in overseas terror activities, but some Islamic leaders, including the National Imams Council, have criticised the move as unfairly targeting Muslims.

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