The Attorney-General, Robert McClelland, said Australia was facing an "immediate crisis" following the outbreak of violence between the gangs but the Federal Government had no jurisdiction to police them.

Instead it would discuss methods of support for the states' crackdown.

Police are only allowed to tap phones while investigating serious crimes such as murder, terrorism, kidnapping or fraud, carrying a penalty of at least seven years' jail, but Mr McClelland said that could be reduced to five years in line with South Australia's controversial anti-bikie laws.

"Bikie gangs are flagrantly flouting the law. They are violent people. They are putting drugs on our streets," he said. "Reducing the crime level from seven to five years in respect to specifically identified offences is obviously something the Commonwealth is prepared to consider."

Associating with members carries a maximum penalty of five years in jail, under the state's yet-to-be tested laws. NSW has promised an even tougher regime by mid-year that will also ban gangs from taking part in businesses such as tow-truck driving and the liquor industry.

Mr McClelland said he would also discuss laws of evidence to make it easier for courts in different states to prosecute people for being members of proscribed groups.

The president of the NSW Council for Civil Liberties, Cameron Murphy, said the measures were an over-reaction. Australians already had their phones tapped at a much higher rate than US citizens.

■ Anti-terrorism and money-laundering laws may be diluted because of the global financial crisis. Mr McClelland said the economy was being taken into account in new laws for smaller businesses even though he said organising a terrorist attack did not cost much money.