Government to push $9.9bn towards bolstering cyber security

As well as a range of housing affordability and initiatives aimed at easing the cost of living, the pre-election budget pledges $9.9 billion for Australia’s offensive and defensive cyber capabilities.

The 10-year package aims to enhance cyber and intelligence capabilities – particularly given the growing threats and attacks experienced in Australia during the pandemic.

Mr Frydenberg said in his budget speech: “[T]onight I announce a new 10-year, $9.9 billion investment in Australia’s offensive and defensive cyber capabilities.

“This is the biggest ever investment in Australia’s cyber preparedness.

“Creating 1,900 jobs, more data analysts, computer programmers, and software engineers to boost our capacity to prevent and respond to cyber threats.

“Keeping Australians safe is part of our plan for a stronger future.”

Project REDSPICE

The package includes additional investment into the Australian Signals Directorate (ASD) 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 Mr 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,” Mr Dutton continued.

“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 cyberspace.”

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.

Earlier this week, Prime Minister Scott Morrison announced the creation of a new multi-agency centre hosted by the Office of National Intelligence, dubbed the Cyber and Critical Technology Intelligence Centre.

Similarly, 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.

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.   

Why financial services need to up their cyber-resilience game

The move to bolster cyber resilience follows multiple incidents of malicious cyber attacks in the financial services sector, with studies revealing last year that the industry suffered the highest number of data breaches between January and July 2021.

Home buyers have also been targeted by scammers and lost hundreds of thousands of dollars.

These sustained attacks and scams (which have escalated during the COVID-19 crisis) led Connective to urge brokers to bolster their cyber-security posture to protect their businesses but lamented that this issue had dropped down their list of priorities.

To help brokers better prepare for cyber attacks and amp up security, Major General (Ret’d) Dr Marcus Thompson, former head of the Department of Defence’s Information Warfare Division, will speak at The Adviser’s upcoming Better Business Summit 2022, to examine why brokers have a large target on their backs as they increasingly operate in a digital environment, and how they could build cyber-resilient brokerages.

The Better Business Summit 2022 will be held in the following locations:

• Brisbane, 28 April 2022 at Sofitel Brisbane Central
• Sydney, 5 May 2022 at the Australian Turf Club, Royal Randwick Racecourse
• Adelaide, 12 May 2022 at the Adelaide Convention Centre
• Perth, 19 May 2022 at Crown Towers
• Melbourne, 2 June 2022 at Crown Towers

Click here to secure your spot at the 2022 Better Business Summit to make sure you don’t miss out.

Alternatively, attend the summit for FREE by becoming a member of The Adviser. Click here to learn more.

For more information about the Better Business Summit 2022, click here.

[Related: Too late to beef up cyber security after attack, brokers told]