Suspected criminals with links to terrorism or violent extremism, including returned foreign fighters, will be automatically refused bail in NSW under new laws promised by Premier Mike Baird.

Mr Baird on Friday said the move to tighten bail laws and tough new gun restrictions was a direct response to the Sydney Siege and the deaths of Tori Johnson and Katrina Dawson.

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“In the uncharted world of lone-wolf terrorism, we will always face a degree of risk,” he said.

“But we can reduce this risk by introducing tough new laws that ensure there are fewer dangerous people on our streets who would find it harder to access illegal firearms.”

Judges and magistrates who are deciding whether to grant bail must also take into account an accused person’s links to terrorist organisations, and any statements or actions they have made supporting terrorist activities or violent extremism.

If the accused person has links to people or groups who advocate support for terrorism or extremism, that also has to be taken into account under the changes.

Maximum jail terms for the unauthorised possession, use, supply, or acquisition of firearms where the firearm involved is a pistol, a prohibited firearm, or is defaced, unregistered or stolen, are all set to be increased.

Rewards of up to $10,000 will be on offer for information that leads to a conviction for the possession and use of illegal firearms.

NSW Coroner Michael Barnes is midway through a high-profile inquest which is considering, among other questions, why Lindt cafe gunman Man Haron Monis was free on bail when he caused the Sydney Siege that led to the death of two people last year.