Parents concerned their children are succumbing to religious radicalisation will be able to call a hotline for advice and counselling under a $4 million plan.

The hotline is expected to be outsourced to a non-government organisation in an effort to reduce the risk that parents may regard making such a call as "dobbing in" their children.

The move follows talks between the Commonwealth and states about concerns that families and friends may be reluctant to call the current national security hotline about loved ones and need another avenue to seek help.

A spokeswoman for Justice Minister Michael Keenan said the hotline was "being designed as an advice and support line, not a reporting line".

She said the new call centre would be staffed by "trained professionals, such as counsellors" and it was "envisaged it will be run by a non-government provider".

"Part of the design of the service is implementing risk thresholds and triaging arrangements based on keeping people safe," she said.

"As such, callers will be referred to appropriate services depending on the nature of the call."

She said this was similar to callers to domestic violence helplines who, if fearing imminent danger, could be referred to authorities.

The national plan, funded in the budget, is based on a New South Wales hotline expected to be in operation this year.

A spokesman for the NSW government said the state program was aimed at diverting people from radicalisation, rather than reporting people to authorities.

"It's a countering violent extremism measure rather than a national security hotline, but obviously there will need to be ways to elevate calls to security agencies," he said.

"There are a number of issues to be worked through and a range of agencies will need to be included. One of the issues needing to be worked through is on the privacy aspects."

He said the NSW program would be outsourced to a non-government or community organisation.

Deakin University terrorism expert Greg Barton said the program would have a duty to refer any signs of a clear threat to authorities. But he stressed that police were heavily involved in early intervention and diversion programs now, and always preferred to head off problems before it came to arresting suspects and laying charges.

"You need to be transparent about the fact that if you do find something serious … it would be unrealistic and disingenuous to suggest that police would never be involved," he said.

"No parent wants to be calling up and having their child arrested, but if that was situation that it ultimately led to … it might otherwise result in the child losing his or her life or taking other people's."

Professor Barton said community education was needed to help people understand that just because police were involved it didn't mean arrests and charges would follow.

"Police would very much wish not to put a young person in jail … They've been active in the intervention space for a long time," he said.

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