Labor MP worried over citizenship laws

The threat of losing their citizenship could prevent Muslims from co-operating with police, a Labor MP says.

Alannah MacTiernan is concerned by legislation stripping citizenship from terror suspects because they could be counterproductive in dealing with radicalised Australians.

Some people are becoming hesitant about providing information to police on odd behaviour because of the profound consequences of losing their citizenship, she told parliament on Thursday, citing feedback from her electorate.

The draft laws have yet to be debated in the lower house because they are being reviewed by parliament's intelligence and security committee.

Ms MacTiernan said she feared the changes could create division and cause Muslims to lose confidence in their ability to integrate into the community.

Some Muslim families, who have traditionally sent their children to non-Muslim schools, are moving them to Muslim schools because they fear being spied on.

"We have created a culture of fear," she said.