It comes after legislation permitting the Australian government to review and scrap state, territory, local council and public university deals with other nations on Tuesday passed federal parliament.

Australian National University Professor Rory Medcalf will on Wednesday address the National Press Club, arguing states and territories are currently unprepared to tackle contemporary national security issues.

This included security issues related to critical infrastructure, as well as those associated with espionage, propaganda and cyber threats.

Prof Medcalf will argue state governments lack the capacity to engage with issues such as foreign interference or international tensions, in part due to a dearth of officials with high-level security clearances.

He will call for all Australian states and territories to establish dedicated national security units with security-vetted staffers who can handle confidential information from Australia's national intelligence bodies.

"States and territories are where it gets real," Prof Medcalf says.

"They don't deal with the abstractions of diplomatic talking points or strategic analysis, but the tangible day-to-day elements of national resilience and national vulnerability - critical infrastructure, frontline geography and the daily decisions and livelihoods of Australian citizens."

Prof Medcalf says this has already occurred in the realm of terrorism, with strong relationships in place between state and federal police bodies.

He will argue premiers and first ministers need the best possible advice on foreign interference and a greater say on Australia's national security policy, as rival countries "show no respect for the niceties of federation".

The legislation which cleared parliament on Tuesday allows the foreign minister to assess arrangements between governments or public universities and foreign governments.

Victoria's Belt and Road Initiative infrastructure agreement with China could be an early casualty of the government's legislation.

"We didn't agree with it in the first place, still don't agree with it, and no doubt decisions on that will be made in due course," Treasurer Josh Frydenberg told reporters on Tuesday when asked about the Victorian deal.

Prof Medcalf says federal security briefings to state-based counterparts - such as those which occurred on the BRI - are not always taken seriously enough, often because state officials are not cleared to hear all details.

The new legal regime is set to further anger China, which raised the legislation as one of 14 grievances damaging to relations with Australia.

Australian Associated Press