Royal Commission finds counter-terrorism funding decline amid rising threats
Consensus Summary
A royal commission interim report revealed that while overall intelligence funding rose by 31% from $10.9bn in 2020-21 to $14.3bn in 2024-25, the share allocated to counter-terrorism significantly declined despite heightened threats. The report, triggered by the December 2024 Bondi terror attack, found ASIO’s focus shifted to espionage until 2024, when the terror threat level was raised to 'probable.' Both sources confirm the government’s commitment to adopting all unclassified recommendations, though Opposition Leader Angus Taylor criticized the funding reallocation as an error. The commission also identified outdated counterterrorism plans, last updated in 2019, and recommended a review of information-sharing between agencies. Five recommendations remain classified, and the final report is due by the end of 2026. The government accepted all federal-related recommendations, while the Coalition demanded the upcoming budget address the funding shortfall.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Intelligence funding increased from $10.9bn in 2020-21 to $14.3bn in 2024-25 (31% rise)
- ASIO received a 37% funding increase over the same period
- The proportion of funding allocated to counter-terrorism significantly declined across the National Intelligence Community (NIC) from 2020 to 2025
- The Bondi terror attack occurred in December 2024, prompting the Royal Commission on Antisemitism and Social Cohesion’s interim report
- ASIO’s focus shifted from terrorism to counterintelligence (espionage) until 2024, when the terror threat level was raised to 'probable'
- Five of the 14 royal commission recommendations remain classified for national security reasons
- Australia’s national counterterrorism plan and handbook were last substantively updated in 2019, with only minor changes in 2021
- The Australia-New Zealand Counter-Terrorism Committee (ANZCTC) has not updated the plan for seven years
- The interim report did not conclude whether there were failures to identify or act on intelligence leading up to the Bondi attack, citing procedural fairness concerns
- Royal Commissioner Virginia Bell recommended a review of information-sharing between agencies, to be completed within three months
Points of Difference
Details reported by only one source:
- Prime Minister Anthony Albanese stated at the News Corp’s Future Western Sydney summit that all national security agencies have more funding today than when his government was elected in 2022
- Opposition Leader Angus Taylor called the funding reallocation 'an egregious error' given the October 7, 2023, attacks on Israel
- Albanese repeated his pledge to adopt every royal commission recommendation related to the Commonwealth
- The interim report identified outdated counterterrorism plans and communication gaps between agencies as key issues
- The Coalition accused the government of deprioritizing counterterrorism amid heightened threats, particularly to the Jewish community
- The ABC noted that the head of the ANZCTC now holds multiple roles, including citizenship, social cohesion, and counter-foreign interference coordination
- The Dural caravan bomb hoax (revealed as a 'fabricated terrorism plot' in March 2025) was highlighted as an example of joint counterterrorism team weaknesses
- The interim report did not draw conclusions on legal barriers hindering agencies from taking action before the Bondi attack
Contradictions
Conflicting information between sources:
- Newscomau states Angus Taylor explicitly called the funding reallocation 'an egregious error,' while ABC frames it as a 'concerning issue' without the same strong language
- Newscomau reports Albanese dodged questions about counterterrorism resourcing, while ABC states he 'deflected' the question, with slightly different phrasing
- Newscomau emphasizes the Opposition’s claim that the government 'allocated money away from counter-terrorism,' while ABC focuses more on the Coalition’s broader critique of 'leadership, judgement, and preparedness'
Source Articles
Albo riled by counter-terror question
Intelligence agencies are spending less on counter-terrorism compared with five years ago despite getting more funding.
Counterterrorism intelligence's share of funding in 'significant' decline
Royal commissioner Virginia Bell says classified documents reveal a significant shift in intelligence spending away from counterterrorism since 2020, in the first findings of what failings led to last year's Bondi terror attack.