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The Prime Minister has staunchly defended his administration’s financial commitment to the country’s intelligence agencies in light of recent scrutiny. This defense comes after an interim report from the Royal Commission into Antisemitism and Social Cohesion highlighted a decrease in the share of funds allocated specifically for counter-terrorism efforts over the past five years, leading up to the terror incident in Bondi.
In response to the Sydney attack, the Royal Commission was established to probe the effectiveness and operations of security agencies. The interim report, a key outcome of this inquiry, sheds light on the financial trajectory of national intelligence funding.
According to the report, overall funding for National Intelligence Agencies rose significantly, showing a 31 percent increase from 2020 to 2025, reaching a substantial total of $14.9 billion. During this period, the Australian Security Intelligence Organisation (ASIO), the primary domestic intelligence service, saw its budget swell by 37 percent.
Notably, the commission had access to classified materials, allowing for a deeper analysis of how these funds were distributed. This access has prompted further questions about resource allocation priorities in the context of national security and counter-terrorism.
However, the commission was able to review secret material to further interrogate the breakdown of the figures.
“Upon review of classified material, the Commission has observed that despite this overall increase, the proportion of funding allocated to counter-terrorism significantly declined across the National Intelligence Community over the period from 2020 to 2025,” the report stated.
A source familiar with the royal commission’s internal processes has confirmed to SBS News that the decline in counterterrorism spending was considered a significant concern that warranted further investigation.
Prime Minister Anthony Albanese has defended the way funds have been allocated since his government was elected in 2022.
“The report shows that funding for our security agencies has increased since we came to office,” he said in an interview with SBS News.
Asked about the significant decline in counterterrorism as a share of overall funding, Albanese pointed to the broader funding envelope increasing.
“The report shows the opposite,” he responded.
“The report makes it clear that there was no inadequacy when it comes to preventing terrorist acts as a result of government agencies.”
The government has adopted all the report’s recommendations that relate to the Commonwealth.
“I take some considerable comfort from the fact that it says there is no urgent action required in order to keep Australians safe,” Albanese said.
Chapter 8 of the report, which focused on legislative frameworks, stated that “no agency” had urged legislative reforms “to prevent, detect or respond to an attack of a similar nature to the Bondi attack”.
Upon review of classified material, the Commission has observed that despite this overall increase, the proportion of funding allocated to counter-terrorism significantly declined across the National Intelligence Community over the period from 2020 to 2025.
The interim report from the Royal Commission into Antisemitism and Social Cohesion
It added that the current laws did not prevent “intelligence or law enforcement agencies from taking action that may have prevented the Bondi attack”.
The commission did not reach a conclusion on whether there were intelligence failures or issues with police resource allocations, and security agencies are expected to be grilled on these potential factors in the months ahead.
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