The government has said that the laws, a world first, are necessary to help combat terrorism and crime, the BBC reported.
The laws were rushed through parliament on its final day of the year.
The Labor opposition said it had reluctantly supported the laws to help protect Australians during the Christmas period, but on Friday it said that "legitimate concerns" about them remained.
Australia already has laws which require providers to hand over a suspect's communication to police.
Under Australia's legislation, the police can force companies to create a technical function that would give them access to encrypted messages without the user's knowledge.
If companies don't comply with the laws, they risk being fined.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)