Terrorism topped the COAG agenda on Friday. Prime Minister Malcolm Turnbull introduced the idea that terrorists should be kept captive as long as they remain a threat to the public, which the state leaders agreed. However, they failed to agree on economic reforms.

The initial agenda included economic reforms, domestic violence and terrorism. This was also Turnbull's first meeting as prime minister with the territory leaders and the state.

The state leaders agreed to follow the steps of NSW to prolong detention for terror suspects. There are nine jailed terrorists in NSW and four in Victoria.

"If it's appropriate and based on some of the laws we use in relation to sexual offenders, if there are checks and balances, you can count Victoria in to provide support," Turnbull said.

Labor frontbencher Anthony Albanese commented prior to the meeting that it was a good idea. "If people are a threat they should be kept away from those that they threaten," Albanese said.

Dan Tehan, chair of federal parliament's intelligence and security committee, also thought detention is the answer. "Where people are a danger to society after they have served their time for conviction, as we do with sex and as we do with violent offenders ... then they should be put into preventative detention," he was quoted by the ABC.

Although treasurers were already able to agree on modelling the impact of their tax base in the government, the leaders did not decide on a particular model after the meeting, giving Turnbull's governance until next election to make a decision on a firm tax policy.

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