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Australia's ever-increasing reliance on information and communications technology and the threat of a hostile online environment has prompted the review, which will assist the development of a national framework for securing Australia's electronic networks, according to a government statement.

"New and networked systems increasingly underpin our business and social interactions, but they also provide fertile ground for exploitation by cyber criminals", McClelland said.

"The e-security review is an opportunity to look at what help the Government can provide to develop a more secure and trusted electronic operating environment for both the public and private sectors. The review will also consider whether Commonwealth programs can be better focused to deal with the ever increasing range of online threats."

Senator Conroy also noted that the review of e-security was a vital step towards fostering confidence in using the internet for personal and business activities.

A multi-agency team, led by the Attorney-General's Department, will conduct the review, which will be completed by the end of this year.