Afghanistan transition on track, says Aussie PM

All of the country's provincial capitals and three-quarters of its population were in areas where the Afghan National Security Forces (ANSF) led the allied forces, she told Parliament.

Gillard was giving her annual update to parliament on the war in Afghanistan. Afghan Ambassador Nasir Andisha was in the public gallery for the address.

Gillard said that as the transition proceeded, international forces would partner Afghanistan forces less in the field, instead giving more support through small advisory teams.

"This does not mean the end of combat for international forces, but it does mean, gradually and carefully, international forces are moving to a supporting role," Gillard is quoted by the Australian Associated Press as saying.

"By the middle of next year, when transition is due to begin in the fifth and final group of provinces, the ANSF will have lead responsibility for security across the whole country."

The forces of terrorism no longer had a "safe haven" in Afghanistan, she said.

Gillard also touched on the threat posed by insider attacks. Defence had been taking measures including reviewing force protection measures and helping the ANSF strengthen its recruiting process.

"The best evidence that we will prevail against the threat from insider attacks is this: we have not allowed it to disrupt our training and operations," she said.

But she urged those in Australia to remember the soldiers who had given their lives to the cause.

"The house and the people should resolve not only to remember the 39 Australians who have died in Afghanistan - but to care for those they left at home and their mates when they return," she said.

Opposition Leader Tony Abbott said his party remained committed to the campaign.

The dead, the wounded and the grieving had paid a heavy price, he told parliament.

"But it has not been in vain," Abbott said.

"The best available assessments are that al-Qaeda has largely lost the capacity to inflict harm on western countries if not the will."

The International Security Assistance Force and its Afghan partners had continued to make security gains, Abbott said.

But progress was fragile with the Taliban difficult to dislodge in the south of the country.

The border with Pakistan remained porous, he said. Assessments were mixed about whether the Afghan security forces would be ready to cope to take on prime security responsibility in 2014, Abbott said.

"There is no certainty that hard won gains can be held," he said.

"There was never going to be a clear victory in this war.