Cyber Security Minister Clare O'Neil announced the drafting of the 2023-2030 Australian Cyber Security Strategy at the National Press Club in Canberra on Thursday.
She also unveiled the expert advisory board that will develop the new strategy.
"The cyber security strategy will help Australia bring the whole nation into the fight to protect our citizens and to protect our economy," Ms O'Neil said.
"It will help us strengthen critical infrastructure and government networks.
"And the truth is, in cyber security we are unnecessarily vulnerable. We did not do the work nationally over the last decade to help us prepare for this national challenge."
She said Australia will start to "punch back" at hackers who mean to do the country harm.
Ms O'Neil also announced a "strengthening democracy" task force to protect Australia's system of governance and defend it from threats so that the country "can be the light on the hill".
She lashed the former Morrison government for its "xenophobic" rhetoric in national security matters.
"We should never conflate chest beating with strength," Ms O'Neil said.
"We should never confuse fighting words with resolve and the commitment and ability to deliver.
"What I saw was so much public policy being designed not to make our country safer, but to bludgeon or wedge Labor."
She said the Optus and Medibank hacks highlighted vulnerabilities in cyber security.
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