In another attack on the mainstream parties for backing Australian participation in the multinational war on Islamic State extremists in Iraq and Syria, Ms Milne will on Saturday unveil plans for the creation of an institution to be called the Australian Centre for Social Cohesion or ACSC.

"Prevention is much better than cure when it comes to keeping us all safe from risks associated with terrorism,"  she said, arguing that maintaining a "cohesive, tolerant and inclusive community in Australia should be the government's top priority to protect Australia's much-loved multiculturalism".

"If Tony Abbott and the Labor party are serious about making Australians safer, they should invest in programs that bring young Australians of all walks of life together. Money to build communities rather than to implement divisive new laws is what is required."

The move comes as state and territory leaders praised the federal government's $13.4 million pledge designed expressly for the purposes of de-radicalisation.

Item one on the joint communique of Friday's Council of Australian Governments meeting was titled "Counterterrorism Measures" and outlined the nature of the discussion between the two levels of government, which included briefings on the current security situation facing the country from top agency officials.

"The Commonwealth committed to working with the states to ensure the Commonwealth's $13.4 million commitment to strengthening community engagement and countering extremism augments and complements existing state programs," the communique stated.

With Australia's official terrorist alert level sitting on the second-highest rating of "high", meaning an attack of some kind is regarded as likely, authorities remain deeply concerned at the potential for increased radicalisation among Muslim youth.

This process dramatically increases the danger of so-called "lone-wolf" terrorist acts enacted by individuals or small groups of radicalised and disaffected youth, who, prior to that moment, may not have been under any surveillance or police attention.

Fuelling those concerns are signs of increasing hostility towards members of the country's extensive Islamic population.

Authorities concede these incidents will have the dual effects of slowing or even stopping the flow of helpful intelligence from concerned Muslim elders, while adding to the sense of "us-and-them" alienation associated with stoking violent intent.

Following the COAG meeting, South Australian Premier Jay Weatherill used the opportunity to send a message of solidarity to Australian Muslims, telling them they were full and valued members of the community, and acknowledging that women in particular were vulnerable to racist or anti-social treatment due to their highly identifiable attire.

Ms Milne said Prime Minister Abbott had increased the risk of terror acts at home by "blindly following the US into yet another unwinnable war in the Middle East".

"Tony Abbott is allocating millions to a war without a plan, and at the same time slashing every program he can that protects multiculturalism and a cohesive society.

"If Tony Abbott refuses to back the Greens' move for measures to build social cohesion, then his hypocrisy on national security will be fully exposed.

The COAG communique advised that state and territory parliaments would now move to mirror national legislation aimed at beating terrorism.

It also stressed inclusion.

"Our counterterrorism efforts are targeted at preventing criminal activity," it stated. "They are not targeted at any specific ethnic or religious groups and will never be so targeted. While Australians should be vigilant, they need to maintain their usual lives."