FEDERAL BUDGET: Treasurer hands down nearly $10bn in cyber and intelligence funding

Treasurer Josh Frydenberg handed down the federal budget this evening, with $9.9 billion earmarked to support enhanced cyber and intelligence capabilities.

The package includes additional investment into the Australian Signals Directorate under an initiative dubbed Project REDSPICE (Resilience, Effects, Defence, Space, Intelligence, Cyber and Enablers), which is expected to nearly double the size of the intelligence agency over the coming decade.

“The 2022-23 budget continues this government’s strong investment in Defence and the Australian Signals Directorate (ASD). This includes a $9.9 billion investment over the next decade in new national cyber and intelligence capabilities,” Minister for Defence Peter Dutton said.

“Project REDSPICE – Resilience, Effects, Defence, Space, Intelligence, Cyber, and Enablers – is the largest ever investment in the capabilities of the ASD.

“REDSPICE will substantially increase ASD’s offensive cyber capabilities, its ability to detect and respond to cyber attacks, and introduce new intelligence capabilities. It will also create over 1,900 new jobs, almost doubling the ASD’s size.”

According to Minister Dutton, Project REDSPICE reflects growing global instability and an uptick in state and non-state sponsored cyber attacks. However, budget papers have also shown that REDSPICE would further serve as an offensive capability for the nation.

The government further stated that these improvements to Australia’s cyber and intelligence capabilities would serve to protect the Indo-Pacific region from criminal actors, and bolster Australia’s international commitments to Five Eyes and AUKUS.

“This investment in ASD recognises the deteriorating strategic circumstances in our region, characterised by rapid military expansion, growing coercive behaviour and increased cyber attacks. It acknowledges the nature of conflict has changed, with cyber attacks now commonly preceding other forms of military intervention – most recently demonstrated by offensive cyber activity against Ukraine,” Minister Dutton continued.

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“REDSPICE ensures Australia keeps pace with the rapid growth of cyber capabilities of potential adversaries. It provides new intelligence capabilities, new cyber defences to protect our most critical systems, and is a real increase in the potency of ASD’s ability to strike back in cyber space.”

Today’s windfall comes as the government announced the creation of several new government-led cyber security outlets to oversee the nation’s cyber security infrastructure.

Last night, the Prime Minister announced the creation of a new multi-agency centre hosted by the Officer of National Intelligence, dubbed the Cyber and Critical Technology Intelligence Centre.

Earlier in the week, the ASD also flagged the opening of a new cyber and foreign intelligence facility in Majura Park, Canberra, built to foster security partnerships across the intelligence community, law enforcement, Australian industry and international partners.

The new centre is expected to house agents and personnel from the Australian Defence Force, the Australian Federal Police, the Australian Criminal Intelligence Commission, Home Affairs and representatives from industry.

The Majura Park facility is also tipped to create new employment opportunities for intelligence analysts, cyber operators, technology researchers, and corporate enablers.

Again, earlier in the month, the Commonwealth government also officially opened the Joint Policing Cybercrime Coordination Centre (JPC3) – a new Australian Federal Police-led centre designed to house collaboration between law enforcement and intelligence services representatives focused on combating the growing threat of malicious cyber activity.

Many in the business community have reacted positively to the announcement.

Andrew Wilson, chief executive officer of Senetas, welcomed opportunities to leverage local cyber capabilities.

“We strongly support the almost $9 billion funding for cyber security and intelligence outlined in the federal budget. Bolstering our cyber security capabilities is not only critical to Australia’s defence and economic strengths but provides a major opportunity to leverage Australian ‘homegrown’ world leading cyber security technologies.

“Australian companies provide some of the most advanced and threat-resistant cyber security solutions. They include protection of the most sensitive data and critical IT infrastructure used in government, defence, enterprise and national infrastructure such as energy and telecommunications.

“The war in Ukraine has highlighted cyber security threats as the first weapon drawn in geopolitical conflict. Prior to Russia’s invasion of Ukraine, cyber gangs and Russian state-sponsored cyber criminals had relentlessly attacked US and numerous other allied countries’ defence and government agencies’ systems.”

More to follow...