Human rights officials have warned Australia risks being left behind the rest of the world unless a national authority is set up to help protect whistleblowers.
A parliamentary inquiry is examining whistleblower protection reform, set to be implemented ahead of the start of the National Anti-Corruption Commission.
Senior lawyer for the Human Rights Law Centre Kieran Pender said while other countries had set up broader bodies to oversee whistleblower protections, Australia was yet to establish a similar organisation.
"International best practice is moving inevitably towards a whistleblower protection authority being a central part of whistleblowing schemes," he told the inquiry.
"Australia risks being left behind if we don't have a whistleblower protection authority operating soon."
Mr Pender said the reforms proposed by the government - which are the subject of Monday's inquiry - were a welcome step forward but more needed to be done to protect people exposing wrongdoings.
"Shortcomings in this bill raise concerns about a continued piecemeal approach to whistleblower protections," he said.
"Unfortunately, proposed amendments in this bill, if they are not revised before being enacted, may make it less likely ... that people will have confidence to speak up and be properly protected."
Concerns had been raised behaviour such as bullying, sexual harassment or interpersonal conflict would not be able to be reported with adequate whistleblower protections.
Mr Pender said the removal of those provisions would make it less likely for people to come forward with information.
"It's going to be extremely difficult if this amendment is enacted for a potential whistleblower to know whether or not they're protected," he said.
"We have the very real possibility that someone reporting sexual harassment with a target of the conduct or a bystander might find themselves not protected by these provisions."
A recent review into whistleblower protections recommended employment-related grievances be excluded unless they related to systemic wrongdoings.
Australian Human Rights Commissioner Lorraine Finlay said parliamentary staff should also be protected under changes to whistleblower laws.
"Parliamentary staff often have insider information about the workings of both government and public agencies," she told the inquiry.
"If they are aware of wrongdoing, they should have the same protections as other public servants for speaking out."
The commission called for the government to publish a list of security-cleared lawyers for whistleblowers to access legal information and advice.
Under the proposed laws, whistleblowers can't disclose classified information to lawyers to receive legal advice if lawyers don't have the required security clearance.