Mutual respect the building block: PM

Australians of all backgrounds are entitled to express freely their own beliefs provided they do no harm and don't preach hatred, Prime Minister Malcolm Turnbull says.

Mr Turnbull said the fundamental building block of "our great society" was mutual respect.

"So we acknowledge the right of each individual to observe his or her faith, to be true to their own conscience, to express freely their own beliefs provided they do no harm to others and provided that they do not preach hatred against others," he told the NSW Liberal Party state council in Sydney.

Mr Turnbull said it had become all too apparent that terrorism and violent extremism could emerge from among our own citizens, as occurred with brutal murder of NSW police accountant Curtis Cheng on Friday last week.

"We are determined to be utterly resolute, utterly resolute, robust and unrelenting, in our response to violent extremism. This is a challenge we will meet and beat," he said.

Mr Turnbull said this was not easy.

The government was engaging with Muslims, who were also appalled by such violent extremism, he said.

It was a horror for them as it was for the wider community.

"They are our absolutely indispensable necessary partners in the battle against violent extremism," he said.

"That is why it has been so encouraging, so building in confidence to see leading figures in the Muslim community speaking up against this type of extremism."