Mr Dutton also wants the inquiry to shine a light on work being done to counter right-wing extremists.

He accused Labor politicians of speaking from a "base of ignorance" about the fight being waged against the far-right by Australia's intelligence and security agencies.

"They are working day and night and they don't discriminate against somebody because of their ideology," Mr Dutton told Sky News on Thursday.

"They focus on somebody because they're a threat, because they have been online advocating for a particular violent outcome, because they're planning an attack, because they're seeking funding for terrorist activities.

"Whatever it might be, they concentrate on that target because of the threat they pose to the Australian public."

Mr Dutton has ordered an inquiry into extremist movements and radicalism in Australia, after Labor senator Kristina Keneally demanded a review of Australia's terror laws in relation to the far right.

Senator Keneally said the inquiry was a significant development, particularly given that as recently as last week Mr Dutton described focusing on right-wing extremism as "silly, stupid and petty".

She said the threat far right extremists posed must be brought to the forefront of Australia's national security debate.

Parliament's powerful intelligence and security committee has been asked to examine the nature of extremist movements and individuals, as well as the threat they pose.

The committee will closely examine the motivations, objectives and capacity for violence of Islamist and far-right extremist groups, and how their tactics have changed during the coronavirus pandemic.

It will also investigate the danger high-risk terrorist offenders pose to the community.

"We certainly have an issue with extremists, whether they're extreme right-wing or they're Islamic extremists, that's a concern for us, and everybody in between," Mr Dutton said.

"It's always good to have a refresh, to have a look at the laws that we've got, to look at the ways in which our operations are working, to make sure we've got the most effective tools to defeat the scourge of terrorism."

Mr Dutton has asked the committee to look into the geographic spread of extremist movements and their links to international organisations.

The committee will consider changes that could be made to laws around listing terror groups, as well as potential changes to Australia's counter-terrorism strategy and links between state and federal agencies.

It will also look at radical and extremist groups that fall short of the legal standard required to be considered a terror organisation, examining the role they play in radicalising people and fostering disharmony.

Earlier this year, ASIO said right-wing violent extremism occupied between 30 and 40 per cent of its counter-terror caseload, an increase from between 10 and 15 per cent in 2016.

Mr Dutton also wants the committee to probe the role of social media, encrypted communications platforms and the dark web in allowing extremists to communicate and organise.

It has been told to report back by the end of April.

Australian Associated Press