Government 'to spend extra $450m fighting homegrown terror'

The Abbott government plans to spend an extra $450 million on fighting terrorist propaganda and bolstering intelligence agencies, it's been reported.

The ABC reports that the bulk of the additional budget cash - $296 million - will help strengthen the capabilities of intelligence agencies, including by updating IT systems.

The telecommunications industry will get $131 million to help companies upgrade their storage systems, so they can comply with new metadata laws and hold phone and internet records for two years.

A further $22 million will be spent fighting terrorist propaganda, which is used by organisations like Islamic State to recruit young Australians through the internet and social media.

The government says the extra money "will make it harder for terrorist groups to attract vulnerable Australians", the ABC reports.