The legislation will see the Citizenship Act - which currently stipulates a person ceases to be a national if they serve in the armed forces of a country at war with Australia - expanded to include people who "fight against us in a terrorist group".
There are currently 20 such groups on Canberra's list of terrorist organisations.
"If people have become terrorists, our intention as far as we humanly can is to stop them from coming back," Prime Minister Tony Abbott told reporters.
The announcement came as the government sought to confirm reports that two high-profile Australians fighting with the Islamic State group, Khaled Sharrouf and Mohamed Elomar, were killed in the Iraqi city of Mosul in the past week.
Canberra has not said if they are dual nationals.
The government has been increasingly worried about foreign fighters returning home, with parliament passing a slew of national security laws since Canberra raised the national threat alert to high in September.
Federal police have also carried out counter-terrorism raids in the country.
In essence, he continued, citizenship could be stripped from foreign fighters or people who "engage in terrorism-related conduct inspired by terrorist groups" in Australia or overseas, if they are dual nationals.
The legislation, when tabled in parliament tomorrow, would specify what conduct is covered, but Abbott added that it broadly meant "serious involvement with a terrorist group".
Canberra had previously mulled allowing the immigration minister the right to decide who should lose their citizenship, but he will now only inform them of their fate.
"If, however, the person so affected believes that there is some problem, this matter will be legally reviewable.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
