Australia intelligence funding shift before Bondi attack under scrutiny

Australia's domestic intelligence agency cut the share of its counterterrorism funding to its lowest level since the aftermath of the September 11 attacks before the Bondi attack, according to classified figures cited in material before a royal commission. The figures are said to show that the reduction happened even as the agency assessed that a terrorist attack was probable and that antisemitic violence was escalating. The issue is now set to be examined at the next block of hearings, with the agency's director-general expected to face questions about the shift in priorities.

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The material indicates that counterterrorism resourcing across the Australian Security Intelligence Organisation and other National Intelligence Community agencies fell to a post-2001 low. The decline came despite a broader increase in intelligence funding, including a $3.4 billion rise for National Intelligence Community agencies since 2020 and a 37 per cent increase for the domestic security agency. The same material says espionage and foreign interference, particularly from China, took up a growing share of resources and had overtaken terrorism as the agency's top priority by 2022.

The commission is examining whether the agency and other bodies responded adequately as the terrorism threat rose and antisemitic violence intensified after the 7 October 2023 attacks in Israel. The next stage of hearings is due to begin on Monday, and the agency chief is expected to be questioned about the adequacy of the response to terrorism and antisemitic violence. The exact amount of counterterrorism resourcing remains classified, but the figures are described as showing a return to a level similar to the years before 2001, when the agency devoted 35% to 40% of its resources to counterterrorism.

The findings matter because they go to the balance between different national security threats and how governments allocate limited intelligence resources. In the years after 2001, counterterrorism dominated security planning in many countries, but the material suggests that Australia's focus later shifted toward espionage and foreign interference. That shift is now being tested against the question of whether warning signs of violent extremism and antisemitic threats were given enough weight before the Bondi attack.

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The Bondi attack itself is central to the inquiry, which is looking at the circumstances surrounding the mass shooting and the response of the authorities. The material before the commission says Sajid Akram and his son Naveed killed 15 people in the attack at Bondi Beach in December. The commission's remit includes assessing whether the intelligence and security system was properly calibrated to the threat environment at the time.

The agency at the centre of the inquiry is Australia's main domestic security intelligence body, responsible for counterterrorism, counter-espionage and related threats. Its director-general, Mike Burgess, is expected to be a key witness at the next hearings. The commission is also examining the wider National Intelligence Community, which has seen significant funding growth even as the internal distribution of resources appears to have changed.

The figures cited in the material are notable because they suggest a structural change rather than a short-term operational decision. A lower counterterrorism share does not necessarily mean less overall intelligence activity, but it does indicate that other threats were consuming a larger proportion of attention and funding. That is likely to be a central issue for the commission as it considers whether the system was prepared for the risks that later materialised.

What remains unclear is the precise amount of counterterrorism funding, how the allocation decisions were made, and what internal warnings were acted on at the time. The next hearings are expected to provide more detail on the agency's judgement, the role of senior officials and the extent to which the threat picture was understood before the attack. The commission's findings could shape future debates over how Australia balances terrorism, antisemitism, espionage and foreign interference in its security planning.

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