{"id":34189,"date":"2022-11-07T13:00:00","date_gmt":"2022-11-07T13:00:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2022\/11\/07\/australias-offensive-cyber-effort-yanks-funds-from-defense-plans\/"},"modified":"2026-08-08T18:32:05","modified_gmt":"2026-08-08T18:32:05","slug":"australias-offensive-cyber-effort-yanks-funds-from-defense-plans","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/cyber\/2022\/11\/07\/australias-offensive-cyber-effort-yanks-funds-from-defense-plans\/","title":{"rendered":"How Australia plans to triple its offensive cyber capabilities"},"content":{"rendered":"\n

MELBOURNE, Australia \u2014 Australia\u2019s largest health insurer said Oct. 26 a cybercriminal had hacked the personal data of its 4 million customers. The thief has demanded a ransom and reportedly threatened to expose the diagnoses and treatments of Medibank\u2019s high-profile customers.<\/p>\n\n\n\n

The incident comes a month after Australia\u2019s second-largest wireless telecommunications carrier, Optus, became aware that personal data of more than one-third of the country\u2019s population of 26 million had been stolen.<\/p>\n\n\n\n

But these hacks represent just a small portion of the cyberattacks that target Australia. \u201cThroughout recent years, Australia has been targeted by a range of actors conducting cyber operations that pose a significant threat to our security,\u201d Rachel Noble, who heads the Australian Signals Directorate, wrote in a document outlining Redspice<\/a>, the government\u2019s plan to bolster its cyber capabilities.<\/p>\n\n\n\n

Redspice \u2014 which stands for Resilience, Effects, Defence, Space, Intelligence, Cyber, Enablers \u2014 is set to receive AU$9.9 billion (U.S. $6.3 billion) over the next decade, the government of then-Prime Minister Scott Morrison announced in March.<\/p>\n\n\n\n

The funding represents the largest-ever investment in Australia\u2019s national cyber and intelligence capabilities.<\/p>\n\n\n\n

Where will the money come from?<\/h1>\n\n\n\n

Formed 75 years ago, the Australian Signals Directorate, or ASD, is part of the Defence Department and is entrusted to provide foreign signals intelligence, cybersecurity advice and offensive cyber operations to meet the needs of the department and the military.<\/p>\n\n\n\n

The funding for Redspice is meant to triple Australia\u2019s current offensive cyber capability, double its persistent digital hunting activities, develop advanced artificial intelligence and machine-learning capabilities, and quadruple the global footprint of ASD. It\u2019s also meant to bring on 1,900 new employees and open offices in Brisbane, Perth and Melbourne.<\/p>\n\n\n\n

\"\"
The Australian Signals Directorate\u2019s cyber and foreign intelligence facility in Canberra. (Australian Defence Department)<\/figcaption><\/figure>\n\n\n\n

\u201cThis investment in ASD recognizes the deteriorating strategic circumstances in our region, characterized by rapid military expansion, growing coercive behavior and increased cyberattacks. It acknowledges the nature of conflict has changed, with cyberattacks now commonly preceding other forms of military intervention \u2014 most recently demonstrated by offensive cyber activity against Ukraine,\u201d then-Defence Minister Peter Dutton said in March.<\/p>\n\n\n\n

\u201cRedspice ensures Australia keeps pace with the rapid growth of cyber capabilities of potential adversaries. It provides new intelligence capabilities, new cyber defence capabilities to protect our most critical systems, and is a real increase in the potency to strike back in cyberspace,\u201d he added.<\/p>\n\n\n\n

While the exact capabilities and activities of ASD are a closely guarded secret, Noble provided some details when she testified in April before a Senate panel on government spending.<\/p>\n\n\n\n

\u201cOur job in ASD is as an operational agency with particular regard to cybersecurity \u2014 so providing technical advice and assistance to all Australians,\u201d Noble said. \u201cThat\u2019s a very different role to the Office of National Intelligence, which is to essentially provide strategic intelligence assessment[s].\u201d<\/p>\n\n\n\n

The director general added that the \u201cvast amount\u201d of increased capability to be delivered will come from the increased workforce and the establishment of the new offices around the country.<\/p>\n\n\n\n

Although the funding stretches over 10 years, Noble said, the workforce would triple by the 2026-2027 time frame \u2014 growing by 400 personnel in 2023-2024; 600 in 2024-2035; 500 in 2025-2026; and about 200 in 2026-2027.<\/p>\n\n\n\n

According to the first budget released by the current government on Oct. 25, spending in the 2021-2022 financial year was AU$1.17 billion. Redspice will see funding for 2022-2023 rise to AU$1.7 billion, and then AU$2.32 billion for 2023-2024.<\/p>\n\n\n\n

With Redspice funding at AU$9.9 billion over 10 years, AU$4.2 billion of that has to be found in the four-year forward estimates period. (Australia\u2019s forward estimates include the level of expenses proposed by the government for future years, based on economic, demographic and forecasting assumptions.)<\/p>\n\n\n\n

\"\"
People walk past a Medibank branch in Sydney, Australia, on Oct. 26, 2022. The largest health insurer in the country said a cybercriminal had hacked the personal data of all its 4 million customers. (Rick Rycroft\/AP)<\/figcaption><\/figure>\n\n\n\n

Of the AU$4.2 billion, only AU$588.7 million will be new money, requiring AU$3.6 billion to come from the Defence Department\u2019s Integrated Investment Program, a fully funded plan meant to set the course for defense acquisition over future years. In other words, if a project is listed as part of the program, funding is available for that project over the specified time frame. It is unusual \u2014 but not unheard of \u2014 for a project to be removed from the IIP.<\/p>\n\n\n\n

It\u2019s unclear where the remainder of the funding total will come from.<\/p>\n\n\n\n

So far, this has resulted in the cancelation of the Royal Australian Air Force\u2019s AU$1.3 billion MQ-9B SkyGuardian armed drone program. The direct link was confirmed before a Senate hearing by Matt Yannopoulous, in the acting role of defense secretary. Deliveries were expected to begin in the middle of this decade under Project Air 7003 Phase 1.<\/p>\n\n\n\n

Australia chose to ax the SkyGuardian procurement effort because it had yet to reach Gate 2 approval, and was therefore easier to cancel. However, the new defense minister, Richard Marles, has promised to study the previous government\u2019s decision as part of a Defence Strategic Review to be completed in the first half of 2023.<\/p>\n\n\n\n

\"\"
Australia\u2019s SkyGuardian drone program was axed to provide more funding to Redspice. (Matt Cardy\/Getty Images)<\/figcaption><\/figure>\n\n\n\n

Another major defense acquisition effort yet to gain Gate 2 approval is the Army\u2019s Land 400 Phase 3 Infantry Fighting Vehicle program, worth AU$18-$27 billion.<\/p>\n\n\n\n

Up to 450 new IFVs \u2014 either Hanwha Defense\u2019s AS21 Redback or Rheinmetall\u2019s Lynx KF41 \u2014 are to replace the Army\u2019s Vietnam-era M113 armored personnel carriers. However, both bidders have been told they must submit their respective bids based on an order of 300 vehicles, with options for three tranches of 50 vehicles each.<\/p>\n\n\n\n

However, Defence Department officials have denied that vehicle quantity decrease is due to the need to fund Redspice, saying a government decision on Land 400 is yet to be made.<\/p>\n\n\n\n

Still, a shortfall in funding remains in the forward estimates period. At least some of this funding shortfall will come from three existing ASD projects, which will now be subsumed under Redspice.<\/p>\n\n\n\n

\u201cNone of [the three ASD projects] have been canceled. There was already funding in the IIP, and I\u2019ll speak about them broadly because two of them in particular are highly classified,\u201d Noble said at the Senate hearing. \u201cOne is for building our capability in signals intelligence mission systems; another is for offensive cyber; and one is for components of the CESAR [Cyber Enhanced Situational Awareness and Response] program.\u201d<\/p>\n\n\n\n

\u201cThe programs were funded in the IIP, but have now moved forward in time [and] are, in some respects, being subsumed and added [to Redspice]. Let\u2019s take offensive cyber for example: We might have been on a pathway to deliver an offensive cyber capability, and now what Redspice is enabling is that, while we are on that pathway, we would do it sooner and have more money and capacity to do three times as much as what we were already,\u201d she added.<\/p>\n\n\n\n

No longer \u2018business as usual\u2019<\/h1>\n\n\n\n

Fergus Hanson, director of the International Cyber Policy Centre at the Australian Strategic Policy Institute, said Redspice is critical because of the massive increase in the Australian population\u2019s digital footprint over the last decade.<\/p>\n\n\n\n

\u201cThis has created major opportunities for both offense and defense, and there\u2019s just no way a \u2018business as usual\u2019 approach could keep pace with the rate of change that we have in terms of digital uptake,\u201d he told Defense News.<\/p>\n\n\n\n

Hanson pointed to Australia\u2019s membership in the intelligence-sharing alliance Five Eyes as also driving the financial investment.<\/p>\n\n\n\n

\u201cThe urgency is partly geopolitical and partly just the pace of change in the digital world,\u201d he said. \u201cI don\u2019t think there\u2019s any world in which [Australia] can get close to the U.S. in cyber capability, but I think to remain a meaningful contributor in our areas of specialization is the ambition.\u201d<\/p>\n\n\n\n

He also cited the country\u2019s deteriorating relationship with regional neighbor China, which has implemented trade sanctions against Australia, and the strategic defense agreement AUKUS, which will see Australia, the United Kingdom and the United States work together on nuclear-powered submarine technology.<\/p>\n\n\n\n

\u201cWe used to believe that we didn\u2019t have to choose between our largest trading partner and our most important ally, but with AUKUS we well and truly chose,\u201d Hanson said. \u201cChina took a strategy of trying to push us to our limit and seeing if they could break us, and they ended up pushing us from one side to the other, so that to me adds up to Redspice.\u201d<\/p>\n\n\n\n

The Associated Press contributed to this report.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

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