Demands are growing for a federal royal commission to investigate Australia's deadliest terror attack after the prime minister unveiled plans for an internal review of any potential security failings.
Anthony Albanese on Sunday announced a review into federal law enforcement and intelligence agencies and their ability to keep Australians safe after the Bondi massacre that left 15 people dead and several more critically injured.
But political opponents and prominent Jewish figures have said the probe does not go far enough and a federal royal commission was needed to give investigators the broadest powers to examine the lead-up to and cause of the attack.
Mr Albanese has instead backed a NSW inquiry into the assault, during which a father and son with apparent Islamic State inspiration targeted Hanukkah celebrations.
Former intelligence chief Dennis Richardson will lead the federal government's internal probe into whether "law enforcement and intelligence agencies have the right powers, structures, processes and sharing arrangements in place to keep Australians safe".
"The ISIS-inspired atrocity last Sunday reinforces the rapidly changing security environment in our nation," Mr Albanese said.
"Our security agencies must be in the best position to respond."
The review of agencies such as ASIO and the Australian Federal Police will be conducted by the Department of Prime Minister and Cabinet and is due to be handed to the government by the end of April.
But Labor was roundly criticised for not launching a broader inquiry that could investigate the events in the lead-up to the attack.
Former Liberal treasurer Josh Frydenberg, a prominent member of the Jewish community, said the reviews were "bullshit" and the Commonwealth must take the lead with the most comprehensive, powerful royal commission possible.
"Your departmental review will not go to the heart of the issues and the radicalisation within our country, which has been allowed to explode on your watch," he said.
The NSW-based royal commission was not good enough when the terror threat was not limited to that state, Mr Frydenberg said.
"The tsunami of hate is not just an attack on Jewish Australians, it's a threat to every Australian," he said.
Nationals leader David Littleproud said he believed Mr Albanese was shying away from a federal royal commission because he feared the truth.
"We should look at the failings of decisions made at a political level, at intelligence levels," he said.
"And many of these agencies are at a federal level."
Mr Littleproud acknowledged the failings might extend to before Labor came to power in 2022 and welcomed any potential probe that also examined shortcomings under previous coalition governments.
Independent Allegra Spender, whose electorate includes Bondi, said the terror attack required a thorough, independent inquiry to ensure such a devastating event was never repeated.
A NSW-based royal commission would not have the power to properly review federal agencies such as ASIO.
One of the shooters, Naveed Akram, came to the attention of ASIO in 2019, when the coalition was in power, over his associations with others.
ASIO director-general Mike Burgess welcomed the reviews and said the intelligence agency would "own" and learn from any mistakes.
"ASIO is not all-seeing and all-knowing," he said.
"Tragically, in this case, we did not know about the attack before it happened."
But that did not necessarily mean there had been an intelligence failure, Mr Burgess said.
