AUSTRALIA'S domestic spy agency has warned that foreign intelligence agencies have expanded their cyber-espionage and are developing new equipment to infiltrate Australian governments and businesses.
In its annual security review, ASIO labels terrorism as its top priority. It says internet-enabled hacking and spying and foreign interference remain serious risks and that the threats are becoming more sophisticated.
The review, tabled in Parliament yesterday, is an unclassified version of a highly sensitive report to the Attorney-General, Robert McClelland.
''The threat of hostile intelligence services exploiting Australian information systems was brought into sharper focus, with traditional espionage methods supplemented by new high-technology techniques,'' it says.
''ASIO found further evidence of hostile intelligence services using the internet as a means of appropriating confidential Australian government and business information.''
ASIO says ''small numbers of Australians'' continue to pose a terrorist threat and seek inspiration and resources from foreign conflict zones and failed states.
''The Middle East, South Asia and now East Africa are the primary sources of motivation and capability for extremists in Australia … and some aspire to participate in the violence or seek to learn from the tactics and techniques employed by extremists.''
The director-general, David Irvine, said counter-espionage experts were working with other security agencies to bolster electronic security for government and businesses.
''Today's increasingly interconnected world has great benefits, but it also provides new opportunities for state and non-state actors to advantage themselves at Australia's expense.''