Releasing the nation's new four-year cyber security strategy,Prime Minister Scott Morrison will say the new powers are needed to"track criminals in the darkest corners of the internet to protect our families and children".
Home Affairs Minister Peter Dutton said families and businesses were spending more time online and the country needed to make it safer.
"Paedophiles are targeting kids online in chat groups,"Mr Dutton said.
"Criminals are scamming money off our elderly by stealing their internet banking details. Businesses are being locked out of their systems by ransomware attacks.
"And some foreign governments are using the internet to steal health data and have the potential to turn off banking or energy systems."
The strategy will put new obligations on the operators of critical infrastructure such as power plants,communications and ports so they can better fend off serious cyber attacks,including giving them $66 million to assess their networks for vulnerabilities.