Speaking at a Liberal party conference in Melbourne today, Australia's treasurer Peter Costello said that the US-led War on Terrorism could outlast the Cold War and continue for more than 50 years.
Mr Costello said that Australians needed to be sure about their values as they prepare for a long war on terror.
The treasurer said that Australia must be prepared to protect its values and defend itself against the threat of terrorism.
"There are, unfortunately, terrorists who would rather see Australia as some kind of Islamo-fascist state," he said.
"They are prepared to do us ill. These people do not always come from overseas."
"There are people that are born in Australia who, for whatever reason, have been infected with terrorist ideology; who have trained to give themselves the capacity to do us and our society ill."
Mr Costello warned that the war would not end until all terrorists were defeated and the type of society they wished to create was crushed. "The defeat of them and their ideas will signal the end of the war on terrorism," he said.
Mr Costello said that the government would defend Australia against any terrorist threat. "We have had plots in Australia to blow up buildings and I want to reassure the Australian public that the Government will do what is required to defeat terrorists and their ambitions," he said.

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War on Terrorism could continue longer than the Cold War: Australia's Treasurer