Backgrounder - Security environment update

Continuing unrest in Iraq, instability in the South West Pacific and the recent bombings in Spain serve as a timely reminder of the continuing threat posed by terrorism.

The Coalition Government continues to strengthen Australia's counter-terrorism capabilities with new resources and capabilities across Government, including extensive commitments in the Attorney-General's portfolio.

Since the September 2001 attacks on the United States, the Government has committed $2.3 billion over five years for over 100 measures. The 2004-05 Budget provides a further $754.5 million to fund additional national security measures.

The Government has expanded the National Counter-Terrorism Committee exercise program which involves a high level of commitment from Australian Government and State and Territory agencies with a role in security, law enforcement, intelligence and emergency management, including participation at the very highest levels of government.

The participation of industry representatives also highlights the government's commitment to working with all sectors in the protection of our critical infrastructure.

The Government continues to work with our security, intelligence and law enforcement agencies, in strengthening our intelligence capability, enhancing regional capacity and securing our borders.

Additional security and border protection measures announced in the 2004-05 Budget build on the significant progress that has been made across a range of agencies in the Attorney-General's portfolio as set out below.

Attorney-General's Department

High level review of Australia's security and counter-terrorism arrangements
Formation of the new National Counter-Terrorism Committee (NCTC)

Following the 11 September 2001terrorist attacks, the Government immediately increased resources to the Australian Security Intelligence Organisation, the Protective Security Coordination Centre and the Australian Federal Police to meet the demands of the new security environment.

Customs and other agencies have implemented long-term measures for more effective screening of people and goods to better protect our borders.

The Government has implemented legislation to strengthen Australia's terrorism laws. Most of this legislation was passed by Parliament and took effect in July 2002.

A high-level review of Australia's security and counter-terrorism arrangements was undertaken in conjunction with the States and Territories, resulting in the establishment of the National Counter-Terrorism Committee (NCTC), strengthening of key response capabilities and other measures to bolster cooperative arrangements between the Commonwealth and States and Territories. A further scheduled review is currently being undertaken to validate the current arrangements and identify any new areas where the existing arrangements can be further strengthened.

The establishment of the NCTC followed the signing by national leaders on 24 October 2002of the Inter-Governmental Agreement on Australia's new national counter-terrorism arrangements. The NCTC is required to report annually to the Council of Australian Governments (COAG). The NCTC conducted its inaugural meeting in Canberrafrom 13-15 November 2002 and reported on counter-terrorism preparedness to the COAG meeting on 6 December 2002. COAG agreed to additional funding to enhance our national counter-terrorism capability. This additional funding has been used to upgrade communications systems, supply chemical, biological and radiological (CBR) counter-terrorism equipment to State/Territory police and enhance the NCTC exercise program. The infrastructure upgrade to the Australian Secure Network is due for completion in July 2004; the CBR counter-terrorism equipment for State/Territory police has been purchased and distributed to the various police services; and the first multi-jurisdictional counter-terrorism exercise was successfully conducted in March 2004. This clearly demonstrates that Australia's preparedness to deal with terrorist situations has been significantly strengthened as a result of the increased funding.

The NCTC completed its review of the National Counter-Terrorism Plan (NCTP) and endorsed by government in June 2003. The accompanying Handbook, which sets out the detailed plans, procedures and protocols for the prevention of, response to, and recovery from terrorism, was finalised in September 2003. The NCTC also continues to work with relevant Australian Government and State and Territory departments and agencies to ensure the protection of critical infrastructure from terrorism as agreed at COAG on 6 December 2002.

Legislation

In July 2002 the Australian Government introduced a package of six pieces of counter-terrorism legislation which are all now in force. The Government's counter-terrorism legislative package strengthens and consolidates Australia's legislative framework in regard to terrorism, and demonstrates Australia's commitment to combating terrorism.

The Security Legislation Amendment (Terrorism) Act 2002 is the key piece in the package as it created a new offence of terrorism, and a range of related offences. It also modernised Australia's treason offence, and created a regime for the making of regulations listing organisations that have terrorist links. So far 16 organisations have been listed as terrorist groups under Australian law.
The Suppression of the Financing of Terrorism Act 2002 aims to prevent the movement of funds for terrorist purposes, and to enhance the exchange of information about financial transaction reports with foreign countries.
The Criminal Code Amendment (Suppression of Terrorist Bombings) Act 2002 created offences relating to international terrorist activities using explosive and lethal devices. This Act gives effect to the International Convention for the Suppression of Terrorist Bombings.
The Telecommunications Interception Legislation Amendment Act 2002 introduced a range of amendments to the Telecommunications (Interception) Act 1979 that allow for the use of intercepted material by law enforcement agencies investigating a range of criminal activities, including terrorism.
The Border Security Legislation Amendment Act 2002 addressed the security of Australia's borders, including border surveillance, the movement of people, the movement of goods and the controls Australian Customs has in place to monitor this activity.
The Australian Security Intelligence Organisation Legislation Amendment (Terrorism) Act 2003 enhanced the power of the Australian Security Intelligence Organisation (ASIO) to obtain a warrant to detain and question a person who may have information that is important to the gathering of intelligence about terrorist activity.

Further legislation has been subsequently adopted to amend the Criminal Code Act 1995.

The Criminal Code Amendment (Anti-Hoax and Other Measures) Act 2002 was a strong response to the rise of postal hoaxes after the 11 September 2001terrorist attacks. In addition to causing social harm and distress, hoaxes also waste law enforcement resources in pursuing numerous investigations. The Government updated existing postal offences to deter such malicious and irresponsible actions and increased the applicable penalties to levels that better reflect the harm that can be caused by the sending of hoax material.
The Criminal Code Amendment (Espionage and Related Matters) Act 2002 strengthened Australia's espionage laws by increasing the maximum penalty for espionage and supporting the process of bringing cases of espionage to trial.
As a response to the Baliterrorist attacks, the Government sponsored the Criminal Code Amendment (Offences Against Australians) Act 2002. The Act makes it an offence to murder, commit manslaughter or intentionally or recklessly cause serious harm to an Australian outside Australia. It provides coverage for overseas attacks on Australian citizens and residents where it is appropriate that the perpetrators of those attacks be prosecuted in Australia.
The Criminal Code Amendment (Terrorism) Act 2003 was enacted to remove any uncertainty about the constitutional status of counter-terrorism legislation.

Following the Balibombing, special provisions to enable the matching of DNA material in Australia from those killed in a terrorist attack overseas for the purposes of identification and dissemination of the results were included in the Crimes Act 1914.

The Criminal Code Amendment (Terrorist Organisations) Act 2004 commenced on 10 March 2004. The Act enables a group to be listed as a terrorist organisation under Australian law without the previous prerequisite that the group be identified as such by the UN Security Council. The Act means the Australian Government can list terrorist organisations based on Australia's national interest and security needs, as well as the advice of Australian intelligence organisations.

Prior to the enactment of the Criminal Code Amendment (Terrorist Organisations) Act 2004 Australia could not list terrorist organisations that had not been identified in a decision of the UN Security Council. As an interim measure the Government passed two pieces of legislation in 2003 to allow for the listing of three organisations.

The Criminal Code Amendment (Hizballah) Act 2003 includes the Hizballah External Security Organisation in the definition of terrorist organisation for the purposes of Australia's terrorism laws.
The Criminal Code Amendment (Hamas and Lashkar-e-Tayyiba) Act 2003 includes the military wing of Hamas and the Lashkar-e-Tayyiba organisations in the definition of terrorist organisation for the purposes of Australia's terrorism laws.

The Australian Government has made a number of amendments to other key pieces of legislation to strengthen Australia's ability to enhance national security.

The Australian Protective Service Amendment Act 2003 provides Australian Protective Service and Australian Federal Police officers with emergency questioning and search powers at protected places such as airports and diplomatic premises.
The Crimes (Overseas) Amendment Act 2003 extended the Government's ability to offer the protection of the Australian criminal justice system to civilians deployed overseas in a wide range of situations. These situations would generally be humanitarian or security operations.
The International Transfer of Prisoners Amendment Act 2004 extended the operation of the International Transfer of Prisoners Act 1997 to cover areas that are under the sovereign control of a foreign country but which do not form part of the landmass constituting the mainland of that foreign country or regions that have a high level of autonomy, but which are subject in part to the control of a foreign country, even where the region does not form part of the landmass constituting the mainland of that foreign country. The amendments also facilitate the transfer of Australian citizens, convicted by a United States military commission to Australia for the purpose of serving any penal sentence in accordance with Australian and US law.
The Telecommunications Interception (Amendment) Act 2004 strengthens the existing telecommunications legislation and extends the availability of telecommunications interception warrants to further terrorism-related offences.
The ASIO Legislation Amendment Act 2003 (the Amendment Act) addresses practical issues identified in the context of implementing ASIO's new powers relating to terrorism offences. The Amendment Act ensures that ASIO can effectively collect information necessary to prevent a terrorist act by:
- making it an offence for the subject of a warrant to attempt to leave Australia without permission while the warrant is in force
- doubling the maximum questioning time to 48 hours where an interpreter is used, and
- creating offences for certain disclosures of information relating to a warrant that is in force, and also to operational information for two years after the warrant expires.

The Government has recently introduced two Bills to Parliament which have been referred to the Senate Legal and Constitutional Legislation Committee for inquiry and report.

The Anti-terrorism Bill 2004 addresses various security-related issues. It amends the Crimes Act 1914 to extend the investigation period for suspected terrorism offences and allow law enforcement agencies extra time to make international inquiries. It also amends the Criminal Code Act 1995 to strengthen offences relating to membership of terrorist organisations, and providing or receiving training from a terrorist organisation. The Bill also amends the Proceeds of Crime Act 2002 to improve restrictions placed on any commercial exploitation by a person who has committed foreign indictable offences. In addition, it amends the Crimes (Foreign Incursions and Recruitment) Act 1978 to enhance the foreign incursions offences, particularly in situations where terrorist organisations are operating as part of the armed forces of a state.
The Surveillance Devices Bill 2004 consolidates, updates and modernises the surveillance device powers of the Commonwealth.

In strengthening Australia's counter-terrorism legislative framework to meet the new terrorist environment, the Government recognises the need to ensure that appropriate safeguards are put in place to maintain the balance between security and individual rights and freedom.

Protective Security Coordination Centre

Upgrade of the Protective Security Coordination Centre for its critical role in national crisis management

The role of the Protective Security Coordination Centre in national crisis management has been enhanced. Since 11 September 2001, additional funding of $5.2 million over four years has been allocated to enable the PSCC Watch Office, a dedicated national security coordination facility, to continue operating 24 hours a day, seven days a week.This level of activation has been in place since 19 November 2002, when the Government issued an increased security alert after receiving credible non-specific information of a possible terrorist attack in Australia.

Under the National Counter-Terrorism Plan, the Watch Office performs a critical role in national crisis management arrangements which operate in the event of a threat or incident of terrorism.The Watch Office also forms t he nexus of an established and effective national coordination and information-sharing network incorporating all Commonwealth, State and Territory police and security agencies.

The PSCC also manages the National Security Hotline (1800 123 400), which the Australian Government established in December 2002 to provide a single point of contact for national security information. The Government will provide a further $6.2 million to fund the Hotline in 2004-05.

The Hotline has two main objectives:

to receive information from the public on suspicious activities; and
to provide information and reassurance to the public on the arrangements for preventing, deterring and detecting terrorism in Australia.

Information reported to the National Security Hotline is immediately relayed to the relevant police or security agency. The Hotline has received more than 31,000 calls, of which more than 15,000 have involved the provision of information. Feedback from the police and security agencies to date has been very positive, with some very useful pieces of information being provided. It is encouraging that so many Australians have taken the trouble to draw their concerns to the authorities via the Hotline.

Critical Infrastructure Protection

Critical infrastructure is defined as those physical facilities, supply chains, information technologies and communication networks which if destroyed, degraded or rendered unavailable for an extended period, would significantly impact on the social or economic well-being of the nation, or affect Australia's ability to conduct national defence and ensure national security.

Critical infrastructure extends across many sectors of the economy, including banking and finance, transport and distribution, energy, utilities, health, food supply, manufacturing and communications, as well as key government services and national icons.

The Government's policy on critical infrastructure protection (CIP) seeks to ensure there are adequate levels of protective security on critical infrastructure, minimum single points of failure, and rapid, tested recovery arrangements.

The protection of Australia's critical infrastructure is not the responsibility of governments alone, as much of Australia's critical infrastructure is privately owned or operated. In recognition of this fact, a Business-Government Task Force on Critical Infrastructure met in March 2002, and put forward several proposals to strengthen CIP. The Government endorsed those proposals in November 2002, and one of the most important initiatives- The Trusted Information Sharing Network for Critical Infrastructure Protection (TISN)- was launched at the National Critical Infrastructure Protection Summit in April 2003. Like the Business-Government Task Force, this Summit brought together high level representatives from key business sectors, the States/Territories and relevant Australian Government agencies.

The TISN comprises a number of sector groups, including emergency management, banking and finance, communications, health, energy, water services, and the food chain. These sectors are represented on the Critical Infrastructure Advisory Council (CIAC), which advises Government on a national approach to CIP, priorities and relationships between critical infrastructure sectors.

Building on the success of the 2003 Summit, the Prime Minister announced in February 2004 that a high level industry and Government forum to discuss national security issues of mutual interest would be convened in mid 2004. Complementing the TISN, the forum will involve CEO's, senior ministers and briefings from key Government agencies to:

Provide a high level briefing on the current security environment;
Outline relevant Government initiatives and examine arrangements involving both Government and industry; and
Consider further ways that Government and industry can work together to advance the counter-terrorism and critical infrastructure protection agenda.

The Government's commitment to a strong business-government partnership on critical infrastructure protection is further demonstrated in the 2004-05 Budget in which $50.2 million has been allocated to Australian Government agencies to progress three key aspects of the CIP agenda. They are:

National Coordination and Leadership;
Infrastructure Vulnerability Identification, Analysis and Remediation; and
Infrastructure Interdependence Modelling and Analysis.

The Australian Government will assume a leadership role in these three core areas of activity, working in partnership with industry, and the states and territories. This additional resourcing will accelerate existing work to implement the proposals which arose out of the March 2002 meeting of the Business-Government Task Force on Critical Infrastructure.

This Budget initiative compliments existing funding for critical infrastructure protection, including $24.2 million allocated in the 2002-03 Budget under the Government's E-Security National Agenda. Ongoing protection of the National Information Infrastructure (NII) is a high priority of the CIP agenda. The NII comprises the information systems that support virtually all sectors of the Australian economy, as well as critical government services, including defence and emergency services.

CIP initiatives funded in the 2004-05 Budget include the rigorous assessment of vulnerabilities in key computer networks, the modelling and analysis of cross-sector interdependencies and consequences of critical infrastructure failure, the strengthening of AusCERT (the Australian Computer Emergency Response Team), and increased support for coordination activities within the TISN.

The increased resourcing for CIP builds on strong progress to date. For example, to raise the awareness of stakeholders on CIP issues, Guidelines for the Management of IT Evidence (Standards Australia Handbook 171) were developed and launched in August 2003. A risk management methodology prepared by ASIO for the identification and prioritisation of critical infrastructure was endorsed by the CIAC in December 2003. And a National Strategy for CIP was agreed in March 2004.

The Australian Government continues to work with a range of overseas organisations to help protect our critical infrastructure. Australia continues to take a leadership role on a number of OECD issues including E-Security related initiatives, and through APEC, is committed to a program of Computer Emergency Response Team (CERT) capacity building in our region.

Australian Federal Police

Enhanced technology has seen the AFP continue to play a lead role in ensuring Australia's counter-terrorism capabilities in the wake of terrorist attacks on the United States on September 11, 2001, and again following the Bali bombings in October 2002.

New resources and capabilities were provided across Government, including extensive commitments in the Attorney-General's portfolio. The Government has committed nearly $3.1 billion to national security and border protection measures since September 2001.

The Government continues to work with our security, intelligence and law enforcement agencies, as well as the owners and operators of critical infrastructure and the wider community, to protect Australians and Australian interests against the continuing threat of terrorism.

A number of new and ongoing initiatives have strengthened the AFP capacity to prevent and investigate terrorist offences both here and overseas.

New initiatives include funding for an enhancement of the AFP's counter terrorism rapid deployment capability, establishment of the Protective Service Liaison Officer Network and an expansion of the Air Security Officer programme, along with the establishment of the Jakarta Centre for Law Enforcement Cooperation (see National Security Fact Sheet).

Mobile Strike Teams

Funding from the 2002-03 Budget for the AFP's mobile strike teams continues to assist in the coordination a range of agencies and specialists in multi-jurisdictional, multi-national investigations.

Joint Counter-Terrorism Teams (JCTT)

The establishment of Joint Counter-Terrorism Teams was a major national security initiative. JCTTs operate in all States and Territories and comprise AFP Federal Agents and local detectives working together to identify and investigate potential terrorism offences. The teams continue to build a strong, coordinated national capacity which provides a solid platform to leverage the development of international capacities.

The strength and size of the JCTTs is flexible with additional resources being available at short notice to meet increased demands. There are 11 JCTTs operational with a combined effort currently consisting of 37 Federal Agents, 14 AFP-funded State/Territory Police detectives and 10 investigative support staff. The majority of JCTT members have now received formal AFP training in terrorism investigations.

This additional funding has been used to upgrade communications systems, supply chemical, biological and radiological (CBR) counter-terrorism equipment to State/Territory police and enhance the NCTC exercise program. The infrastructure upgrade to the Australian Secure Network is due for completion in July 2004; the CBR counter-terrorism equipment for State/ Territory police has been purchased and distributed to the various police services; and the first multi-jurisdictional counter-terrorism exercise was successfully conducted in March 2004. This clearly demonstrates that Australia's preparedness to deal with terrorist situations has been significantly strengthened as a result of the increased funding.

Counter Terrorism Exercises

The AFP continues to give strong and active support to whole of government activities which test response and inter-operability arrangements for a terrorist incident. In September 2003 the AFP was involved in the CTORG Exercise Wyvern Primo which involved deploying 20 officers offshore.

During March 2004, the AFP participated in the first multi-jurisdictional exercise (MJEX), 'Mercury 04', as part of the NCTC capability development program. The AFP dedicated significant resources in all four participating jurisdictions and within appropriate Australian Government agencies.

The exercise focused on testing the operational responses to major terrorist incidents as well as the critical decision-making processes set up to deal with these events and demonstrated the high degree of cooperation between the Australian Government and the States and Territories.

Counter Terrorism Offshore

Operationally, the AFP has undertaken a number of Counter Terrorism operational deployments including to Indonesia, the Philippines, Saudi Arabia and Turkey. Deployments have involved activities ranging from disaster victim identification and forensic, technical and intelligence support through to direct operational and investigative involvement.

The March 2004 terrorist attack in Spain served as a reminder that international terrorism is relentless and requires a collective and uncompromising response. As part of the AFP's international support effort, Forensic and Australian Bomb Data Centre members were deployed to Madrid.

The AFP continues to maintain a team in Jakarta working closely with the Indonesian National Police on terrorism related matters. The size and composition of this team fluctuates according to operational needs and compliments the work of the JCTTs domestically.

Enhanced Protective Security Services

The Australian Government provided substantial additional funding of $119.3 million over four years to the AFP in the 2002-03 Budget to meet increased requirements for close personal protection (CPP) in the post September 11 threat environment. The AFP now has an increased CPP capacity and is able to draw on members from its offices around Australia to meet surge requirements and deploy to areas of greatest need.

The capability allows the AFP to meet the government's obligations to protect dignitaries, Internationally Protected Persons and visiting delegations as well as providing for the protection of Australian High Office Holders.

Expansion of the AFP International Network

Additional funding of $47 million over four years in the 2002-03 Budget enabled the AFP to significantly increase the number of officers deployed overseas through its International Network. The expansion is now complete and the International Network comprises a total of 65 sworn and unsworn members deployed in 32 cities in 26 countries.

The expansion of the International Network included the establishment of dedicated counter-terrorism officers in London, Washington and Kuala Lumpur as well as the establishment of six new overseas offices in Pretoria, Ho Chi Minh City, Chiang Mai, Dubai, Belgrade and Bali. Additional officers were deployed to a number of existing overseas officers in response to increasing demands across a range of transnational crimes, including counter terrorism.

High-tech crime

An allocation of $6.8 million over four years in the 2002-03 Budget allowed the AFP to upgrade its high tech crime investigative capacities as part of the e-security national agenda initiative.

A High Tech Crime Team formed the core of the new Australian High Tech Crime Centre (AHTCC), launched in July 2003, hosted by the AFP under the strategic direction of a Board comprising all Australian police commissioners.

The AHTCC provides a coordinated national approach to combating high tech crimes of a serious, complex and/or multi-jurisdictional nature generally beyond the capability of one jurisdiction.

The Centre assists in improving the capacity of all participating jurisdictions to deal with high tech crime matters, and supports efforts to protect the National Information Infrastructure (NII).

In its first year of operation, the AHTCC has also conducted a number of investigations, and coordinated a range of others across Australia, leading to the arrest and disruption of some criminal enterprises, and contributing to a greater understanding of the threats posed in this crime environment.

Enhanced Technical Capacity

The 2002-03 Budget provided $11.0 million over four years to maintain and develop telecommunication interception capacity. It is integral to the capacity of the AFP and its partner agencies to investigate and counter threats to domestic security.

Funding of $7.2 million over four years was provided in 2002-03, to increase the AFP's mobile rapid response capabilities with the provision of Major Operational Support Vehicles. The vehicles are designed to provide AFP officers with sufficient mobility and sophisticated communication facilities to support investigations of serious crime in remote areas.

The funding will provide AFP investigators with access to three remote command centres and forensic mobile labs incorporating a range of forensic analysis and electronic surveillance technology and the capacity to link in real time to the AFP's information network and to Major Incident Rooms through Australia.

Australian Protective Service

Following the Australian Protective Service becoming an operating division of the AFP, substantial enhancements to Australian aviation security have been successfully implemented.

These include the establishment of the Air Security Officer (ASO) programme and the AFR upgrade of aviation sites funded from the Enhanced Aviation Security new measure 2002-03 ($124.1 million over four years), with additional funding for the ASO Programme of $15.7 million over four years from 2004-05.

There has also been an expansion of the Explosive Detection Canine (EDC) capability through dedicated Budget funding commencing in the 2002-03 financial year ($4.4 million over four years).

Counter-Terrorist First Response capability at major airports

Additional funding has enabled the AFP to expand its Counter-Terrorist First Response (CTFR) role at eight airports (Brisbane, Perth, Cairns, Adelaide, Darwin, Melbourne, Sydney and the Gold Coast) and to introduce the capability at three additional airports (Alice Springs, Canberra and Hobart).

Australian Customs Service

The Australian Government, in the 2004-05 Budget has confirmed that border protection continues to be a key priority. Increased funding will allow Customs to commence several new initiatives including armed Southern Ocean patrols, expansion of the biometric border processing trial, and continue development of other technology related initiatives.

Southern Ocean patrols

Customs has been allocated $84.2 million over two years to continue efforts to combat illegal fishing in the Southern Ocean. The funding will allow Customs to procure a vessel to conduct armed patrols against illegal, unreported and unregulated fishing in the Southern Ocean. It will enable Customs to commence regular armed patrols of the Southern Ocean to better protect Australia's sovereign interests and valuable fish resources.

Increased vessel boarding

An allocation of $2.8 million for 2004-05 will enable Customs to increase the number of vessels it boards at their first port of arrival into Australia. It will allow Customs officers to board up to 80 per cent of all vessels at their first port of arrival into Australia, up from about 70 per cent at present.

Biometric border processing trial

The provision of $3.1 million in 2004-05 funding further research and development of biometrics at the border reinforces Australia's position as a world leader in border-control technologies. The funding will allow Customs to extend the SmartGate trial to a second international airport for holders of prototype Australian biometric passports, selected passengers and enrolled aircrew.

Increase in coastal surveillance and response

The Government continues to fund a 20 per cent increase in flying hours for Customs Coastwatch Dash 8 electronic surveillance aircraft. Additional funding previously provided has enabled the Customs Marine Unit to double its sea days.

Satellite video transmission systems have been fitted to all Customs National Marine Vessels, enhancing their ability to provide information to client agencies while undertaking surveillance and response activities.

Installation of shipping container x-ray facilities at major ports

Sea cargo examinations have increased 20-fold, with the opening of container x-ray facilities in Brisbane, Fremantle, Melbourne and Sydney. These facilities have already been responsible for a number of significant seizures of narcotics and cigarettes.

National waterfront closed circuit television

Customs now monitors 56 port areas and 88 separate wharves around Australia 24-hours a day, seven days a week, using a sophisticated national closed circuit television (CCTV) network. The cameras can be monitored from 23 different Customs locations.

High frequency surface wave radar

In conjunction with Defence, Customs was allocated $12.8 million over four years in 2002-03 to conduct a trial of High Frequency Surface Wave Radar technology to increase surveillance coverage beyond the capabilities of conventional microwave radar. The radar can detect surface vessels and low-flying aircraft beyond the visible horizon. If the trials are successful, this technology could be capable of providing 24-hour wide area coast surveillance. Defence and Customs have signed an Indigenous Land Use Agreement with the people of the Torres Strait to facilitate the joint-trial.

New air cargo screening trial

Funding of $7.1 million in the 2004-05 Budget will enable Customs to conduct a field trial of new air cargo scanning technology developed in partnership with the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The neutron scanning equipment has the potential to rapidly detect explosives, drugs and other prohibited goods in air cargo containers.

Improved passenger processing

All airlines are required to send advance passenger information to Immigration and Customs using the Advance Passenger Processing (APP) system. This enables Customs to check more than 90 per cent of passengers against immigration and law enforcement alert lists before they arrive in Australia.

All airlines must also provide Customs with access to their computer reservation and departure control systems to enable Customs to analyse passenger information to assess border security risks.

Customs has installed new travel document readers in all Australian International Airports. These readers assess passports for fraudulent features and use multi-spectral lighting to detect features such as hidden patterns and emblems while also checking for signs of tampering. The use of these document readers will assist Customs by identifying faults not visible to a human operator and will significantly enhance Customs ability to prevent people from entering Australia using fake passports

At least 85 per cent of all air passengers' baggage is either searched or x-rayed by border agencies on entry into Australia.

Australian Crime Commission

The Australian Crime Commission (ACC) commenced operations on 1 January 2003 to improve Australia's ability to meet the threats posed by nationally significant crime. The ACC aims to reduce the incidence and impact of serious and organised criminal activity.

The ACC was given $6.7 million over four years to increase its Telephone Intercept capabilities. This measure will enable the Government to modernise and expand the surveillance capacities of Commonwealth law enforcement agencies.

Australian Transaction Reports and Analysis Centre

The work AUSTRAC initiated after the events of 11 September 2001 has increased as a result of the terrorism that took place on 12 October 2002 in Bali. As well as enhancing its domestic focus on countering the financing of terrorism, AUSTRAC has also made a number of advances internationally. AUSTRAC is working bilaterally with countries in our region and also collectively in other strategic regions, with the world's Financial Intelligence Units through the work of the Egmont Group of Financial Intelligence Units.

This work has been assisted by amendments to the Financial Transaction Reports Act (Cth) 1988 that were enacted by the Suppression of the Financing of Terrorism Act (Cth) 2002. These amendments have enabled AUSTRAC to more readily enter into agreements for the exchange of financial intelligence with our overseas counterparts.

AUSTRAC has been provided with additional funding of $36 million in 2004-05 over four years for analytical positions to provide higher level assessment, analysis and prioritisation of financial intelligence, in particular identifying the finances and financiers of terrorists and their organisations. Further funding has also boosted partner liaison and support as well as regulation and compliance activities.
AUSTRAC has also entered into new Memorandums of Understanding with the Commissioner of the AFP and the Director-General of ASIO, to enable the Australian Federal Police and the Australian Security Intelligence Organisation to more readily exchange AUSTRAC's financial intelligence with their overseas counterparts.
AUSTRAC has increased its international instruments to exchange financial intelligence with counterpart agencies overseas from 14 in 2002-2003 to 26 in 2003-2004. Countries include Belgium, Canada, Croatia, Denmark, France, Guernsey, South Korea, Isle of Man, Indonesia, Israel, Italy, Lebanon, Malaysia, Mauritius, the Netherlands, New Zealand, Poland, Portugal, Singapore, Slovenia, South Africa, the United Kingdom, the USA, Vanuatu and Venezuela.
AUSTRAC also receives $10 million over four years to work with counterpart financial intelligence units to enhance their counter-terrorism financing capabilities.

ASIO

Protecting Australians- Strengthening our intelligence capabilities

Additional funding provided to ASIO since September 2001 has enabled ASIO to:

establish a 24-hour monitoring and alert facility
increase overseas liaison
establish the National Threat Assessment Centre (NTAC) to operate 24 hours a day to identify and issue assessments of threats to Australia, and Australian interests abroad. The NTAC is located in ASIO with integrated officers from the AFP, ASIS, DIO, DFAT, DoTRS and ONA;
Enhance counter-terrorism cooperation with other intelligence, law enforcement and border control agencies
Recruit and train additional staff to undertake investigations and analysis, and to expand ASIO's border control, threat assessment, critical infrastructure protection and security assessment capabilities.

The Government will provide ASIO with additional funding of $131.4 million over four years to increase national security capabilities. This funding comprises the following measures.

Protecting Australians - strengthening intelligence capability

The Government will provide ASIO with $127.3 million as part of increased funding to intelligence agencies.

This is a cross-portfolio measure involving ASIO, the Australian Secret Intelligence Service, the Office of National Assessments and the Department of Defence.

Protecting Australians - securing our border

The Government will provide ASIO with $3.0 million over four years to further strengthen existing border control measures.

This is a cross-portfolio measure involving DIMIA.

Protecting Australians - enhancing regional capabilities

The Government will provide $1.1 million over four years to enable ASIO to continue its counter-terrorism training and advice to Melanesia.

This is a cross-portfolio measure involving AFP.

In addition, ASIO will receive $7.4 million over two years ($3.7 million in 2004-05 and $3.7 million in 2005-06) as part of the Commonwealth's contributions for security for the Melbourne Commonwealth Games (M2006) to be held from 15 to 26 March 2006.

This is also part of a cross-portfolio measure co-ordinated by DCITA.

Emergency Management Australia

Enhancing the capability of Commonwealth and State agencies to respond to terrorist and security threats and incidents

The Government has enhanced the capability of Commonwealth and State agencies to respond to terrorist and security incidents. In the 2002-03 Budget, $17.8 million was provided for the purchase over four years of specialised equipment and training for first responders to chemical, biological and radiological incidents.

Following discussion with Commonwealth and State and Territory agencies, equipment and training needs have been identified. A program management structure has been established within EMA and procurement action for equipment has commenced. Initial deliveries of equipment have been made and the issues of equipment to the States and Territories has occurred

In addition to specialist equipment and training, EMA has coordinated the formation of the Emergency Management Sector Critical Infrastructure Protection (CIP) Working Group.

This Working Group facilitates the sharing of information between the Commonwealth, States/Territories and industry on approaches to CIP and identifies what needs to be done individually and collectively to address issues relating to critical infrastructure.

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