The organisation was listed as a prohibited hate group late on Thursday, Home Affairs Minister Tony Burke announced.
"There's a general acceptance from Australians that there is a level of hatred and dehumanising language that does provide a pathway for violence, even if it's not using the words violence," he told ABC radio on Friday.
It is now a crime to be a member of Hizb ut-Tahrir, to recruit for it, and to provide training, funds or support to the group.
The tough new hate crimes laws were enacted following the December 14 terror attack at Bondi which killed 15 people and left more than 40 wounded.
Other countries that have banned Hizb ut-Tahrir include a number of Muslim-majority nations such as Egypt, Indonesia, Jordan, Pakistan, and Bangladesh.
Opposition home affairs spokesman Jonno Duniam said there had been "inaction" from Labor in responding to extremism.
"Hizb ut-Tahrir have advocated some of the most appalling and disgusting approaches to how society should work, and have done this in our suburbs with impunity," he said.
"They should have been shut down a long time ago."
Australia's gun rules were also tightened under the government's response to tackling anti-Semitism.
When the new powers were legislated, the Albanese government indicated it planned to ban Hizb ut-Tahrir and neo-Nazis that were part of the National Socialist Network.
The National Socialist Network disbanded the day before they came into effect to avoid falling foul of the law.
Mr Burke said Australia had only previously been able to ban groups if they went all the way in calling for violence and satisfied the definition of being a terrorist organisation.
ASIO director-general Mike Burgess had said the two groups were falling just short of the definitions, but believed they were a real risk in providing a pathway to violence.
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