Canberra: Australia`s parliament has passed laws to strip dual nationals of their citizenship if they are convicted of terrorism offences or found to have fought with banned groups overseas, despite concerns about deporting known militants.

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Attorney-General George Brandis said the Australian Citizenship Amendment (Allegiance to Australia) Bill, passed late Thursday, updated existing law to reflect "the new age of terrorism".

"The legislation will strip Australian citizenship from dual citizens who are involved in terrorist conduct overseas or convicted of a terrorism offence in Australia," he said Friday.

"It will also ensure terrorists who are dual nationals are prevented from returning to Australia and dual nationals who engage in terrorism within Australia can be removed where possible."

Brandis said the changes were necessary given the current threat around the world and in Australia -- where the risk of a terror attack is deemed by officials to be "probable".