Anthony Albanese announced parliament will return next Monday to debate a bill aimed at combating anti-Semitism, hate speech and extremism.
The action is in response to the December 14 terrorist attack on a Hanukkah celebration at Bondi Beach, which claimed the lives of 15 people and injured dozens more.
"It's a comprehensive package of reforms which creates serious offences for hate preachers and leaders seeking to radicalise young Australians," the prime minister told reporters in Canberra.
The draft legislation will set up the National Guns Buyback Scheme, which will limit the number of firearms one person can own and make Australian citizenship a condition of holding a gun licence.
"The terrorists at Bondi Beach had hatred in their minds, but guns in their hands - this law will deal with both," Mr Albanese said.
Opposition Leader Sussan Ley criticised the combining of hate speech and gun reforms, while questions remained over whether the Nationals will accept the firearms crackdown.
"We are deeply sceptical of the prime minister's decision to introduce a single bill that will attempt to cover multiple complex and unrelated policy areas," Ms Ley said.
"Issues of speech are clearly separate from the ownership and management of firearms."
The coalition would consider the government's bill but wasn't in the business of "signing blank cheques", opposition home affairs spokesman Jonno Duniam said.
Executive Council of Australian Jewry co-chief executive Peter Wertheim said the government's announcement was promising.
"The country cannot risk another round of reforms that will fall short of providing the level of protection that it is claimed they provide," he said.
"We will have more to say when the bill is released and we can assess its specific provisions."
The proposed changes will increase penalties for hate crimes, ensure motivations of extremism will be considered in sentencing and create a new offence for inciting hatred in order to intimidate or harass.
"Once these laws are passed, they will be the toughest hate laws Australia has ever seen," Attorney-General Michelle Rowland said.
"They will specifically target those who seek to spread hatred and disrupt social cohesion in our community."
The bill will also expand and strengthen the ban on prohibited Nazi symbols and make it easier for the home affairs minister to cancel or refuse visas for people intent on spreading hatred.
When parliament returns next week, a condolence motion will be held to recognise the trauma of the Bondi attack and honour bystanders and first responders for saving lives.
"This motion will unequivocally condemn the terrorist atrocity perpetrated at Bondi Beach and commit our parliament to eradicating the evil of anti-Semitism," Mr Albanese said.