Chapter 2Key issues
2.1The annual report was broadly positive regarding the performance of the Australian Federal Police (AFP). For instance, the AFP Commissioner, Mr Reece Kershaw, told the committee at the public hearing:
I am pleased to be here today to discuss the AFP's 2022-2023 annual report. In 2022-2023 the AFP helped create a safer Australia by achieving significant operational outcomes through the diligent efforts of our people and partners. We protected the community from a range of criminal threats, including from transnational, serious and organised crime; online child sexual abuse; cybercrime; and foreign interference. The AFP seized 30tonnes of illicit drugs and precursors, resulting in $11.8 billion in avoided harm to the community. It restrained over $352 million in assets and charged 141 people as a result of child exploitation investigations.
2.2This chapter examines the following key issues relating to the AFP’s performance in 2022-23:
key activities and workforce issues; and
the AFP’s performance framework and results.
2.3The chapter concludes by providing the committee’s view.
Key activities
Child exploitation
2.4A key activity for 2022-23 was completing the rollout of the Australian Victim Identification Database and Child Abuse Reporting and Triage System to state and territory jurisdictions, enabling greater use of national data holdings and intelligence to better investigate offenders and safeguard children.
2.5In speaking about prevention work in this area, Mr Kershaw told the committee that the AFP’s ThinkUKnow program received the Bronze Award in the Australian Crime and Violence Prevention Awards. The program educates students, parents, carers and teachers about online child sexual exploitation and how to keep young people safe online and has been delivered across Australia since 2009.
2.6The committee recently completed an inquiry into law enforcement capabilities in relation to child exploitation. Given this recent work, the committee sought updated information on this topic at the hearing. The committee asked about the triage system for reporting within the Australian Centre to Counter Child Exploitation (ACCCE). Ms Lesa Gale, Deputy Commissioner International and Specialist Capabilities, responded that:
…it utilises a risk management protocol that's been designed in partnership with academia to mitigate and manage risk. This is to ensure that, because of the volume of reports that we receive on a daily basis, priority goes to the most critical matters so that our officers, who are situated around the country, can respond in partnership through our Joint Anti Child Exploitation Teams with the state and territory partners in as much of an agile way to priorities as we can.
2.7Ms Gale added:
We work together 24/7 with our state and territory counterparts so that as the report comes from the Australian Centre to Counter Child Exploitation it goes immediately to the teams to respond rapidly.
2.8The committee asked about the status of Operation Tenterfield, and support for the victims and their families. Noting the matter is before the Brisbane Magistrates Court, Mr Grant Nicholls, Acting Deputy Commissioner Crime, told the committee:
In terms of the victims, we work closely with our state and territory colleagues because the victims aren't always located in one geographical location. I can tell you there's been a communications network set up to keep the victims informed of progress and proceedings. I understand that at the conclusion of appearances and matters of that nature, the victims are advised through the mechanism of a technological intervention so they can keep up to date with progress in terms of what's occurring, why matters have been remanded off.
2.9Ms Gale added that:
…through the Australian Centre to Counter Child Exploitation, they have a number of partnerships with non-government organisations across the country and internationally. That network also reinforces what my colleague said in terms of support to victims of these heinous crimes.
2.10In addition to supporting the victims, Mr Kershaw emphasised the need for deep research on the offender profile to inform the intelligence picture.Additionally, international partnerships are also critical where Australians are using the internet to commit offences against vulnerable children overseas. Strategic partnerships with industry are also vital to counter issues such as encryption.
Effect of encryption and artificial intelligence
2.11The committee discussed the effect of increasing end-to-end encryption on reporting of child exploitation and on law enforcement operations. Mr Kershaw told the committee that encryption will make the job of police more difficult and will result in ‘more offending in this country that goes undetected’. Mr Kershaw spoke about the concerns of the Five Eyes partners and actions underway:
…as far as the Five Eyes go, we all agree that encryption is going to be one of the biggest issues we're going to face when it comes to committing cybercrime or online child exploitation, money-laundering—those kinds of offences, the whole lot. So, for us, we're working with our minister and with government, making sure that we're providing advice and the information in relation to this issue. I think that there will have to be some sort of analysis once we start to see the drop in referrals and the data, and then that data will be an evidence base. Then we'll be able to re-prosecute that and come back and say, 'This is what's actually happening.' I personally think that, if you're a company and you've got that kind of offending happening on your own platform, you have a responsibility, as you would with responsible service of alcohol, to make sure you do the right thing.
2.12Mr Nicholls spoke about the lag time to see the effect of encryption on reporting:
…we do urge technology companies to take a more proactive approach, particularly around the safeguarding of children. We understand that Meta commenced their transition to encryption on Messenger on 5 December. There will be a lag time before we see what the outcome of that's going to be. I think, by the time we have not our next hearing but our subsequent set of estimates hearings, we'll be in a position to give you a fuller answer in the context of the implications and consequences of those changes. I was talking to the commander of ACCCE this morning, and she advises me that conversations are ongoing—I'll just leave it at that. So we are keeping a very close eye on this. We are concerned about it.
2.13Mr Nicholls also highlighted concerns about the effect of artificial intelligence on child exploitation:
We are concerned about the impact and consequences of artificial intelligence and where that's going to end up. An example on that, in the context of artificial intelligence, is child abuse material being created through the mechanism of artificial intelligence. There are a number of issues that I could speak about on that, but, in particular, there's an opportunity cost for our investigators. They are investigating a victim that doesn't exist in the real world, but that doesn't mean there's no victimisation or re-victimisation. Then you get into the issue of deepfakes as well, which is another source of victimisation that we need to address. This is very much a developing area of exploitation.
2.14Further detail on the areas discussed above is available in the committee’s recent report on child exploitation as well as recommendations made by the committee.
Cybercrime
2.15Another key activity for the reporting period was continuing to establish and implement the Joint Policing Cybercrime Coordination Centre (JPC3) and launching Operation Guardian in response to the Optus data breach. Operation Gurdian is a joint operation between the AFP and state and territory police to ‘to identify, disrupt, charge and prosecute criminals seeking to exploit PII [personally identifiable information] obtained from the data breach’.
2.16Speaking on the challenge of cybercrime, Mr Kershaw informed the committee that Australia faces increasing cybercrime threats with more than $33 billion lost as a result of cybercrime in 2021. More recently, a 2023 report by the Australian Institute of Criminology found that ‘65.5 per cent of Australians have been victim to cybercrime in their lifetime’. Mr Kershaw explained that:
Fortuitously, just months before the Optus data breach in September 2022, the AFP opened its Joint Policing Cybercrime Coordination Centre, which we call the JPC3. This brings together cybercrime experts from the AFP, state and territory police, other Commonwealth agencies, the private sector and international policing organisations, to coordinate Australian policing responses to high volume cybercrime. The JPC3 enabled us to supercharge the protection of more than 10,000 customers whose identification credentials had been unlawfully released online under the Optus data breach.
2.17Operation Guardian’s remit was extended to ‘data breaches affecting Medibank, MyDeal, Latitude, and GoAnywhere’. On 6 October 2022, Operation Guardian:
…executed a warrant on the home of a 19-year-old New South Wales based individual in relation to a crime enabled by the exposure of that particular information. This person was responsible for using SMS to try to extort more than 90 customers, using stolen Optus data. The individual was prosecuted and sentenced to an 18-month community correction order, 100 hours of community service and had a conviction recorded.
National Firearms Register
2.18On 6 December 2023 National Cabinet agreed to implement a National Firearms Register and for it be fully operational in four years. As an ongoing area of interest for the committee, and recognising the important role of the ACIC in building the central register, the AFP were asked about the benefits of this work. Mr Kershaw responded:
…I think, overall, it's going to make us a much safer country because we know that what has been happening is that you can sell one firearm in one state and it can transfer across into another state but you don't get a line of sight on where it has gone. So there's an opportunity for diversion and a whole range of things where firearms are being diverted and then we as a community are less safe. Certainly, firearms have been on the agenda for a long time. If we go way back, we remember some of the original major reforms, and this is another major reform. I think modernising all the systems will help law enforcement in particular keep their officers safer on the street—when you do that check on that individual, you'll know that they have registered firearms and others in their possession, possibly—and then just in general when it comes to premises. There's a whole range of things. I think it will make police safer, it will make our community safer and it's a really good outcome.
2.19Further information is available on this issue in the committee’s report on the ACIC Annual Report 2022-23.
2.20Other key activities for 2022-23 noted in the annual report included:
embedding the transnational serious and organised crime (TSOC) Strategy Framework in the AFP’s day-to-day operational practices. One example was the establishment of Taskforce Avarus with AUSTRAC, the Australian Criminal Intelligence Commission (ACIC) and the Australian Border Force on high-risk money laundering activities.
Completing the rollout of SHIELD Health Hubs in all regions and expanding the service’s clinical capabilities. The report noted that since the commencement of SHIELD in 2020-21, there has been an 11 per cent increase in the uptake of Early Access services and a 32 per cent decrease in accepted workers’ compensation claims.
continuing to enhance the operation of the Counter Foreign Interference Taskforce. It was reported that a public campaign was launched to educate Australian communities about how to recognise and report on potential foreign interference.
Workforce
2.21As at 30 June 2023, the AFP had 7 836 staff comprising:
3 453 police officers;
838 protective service officers; and
3 545 unsworn staff.
Recruitment
2.22Recruitment for frontline policing was a priority over the reporting period. 288recruits across 12 programs graduated, including 45 protective service officers and 243 police officers. Marketing efforts were increased to attract diverse candidates.
Attrition rate
2.23In 2022-23, the natural attrition rate increased slightly to 6.3 per cent, compared with 6.1 per cent in 2021-22. The committee asked for an update on this issue at the hearing. Mr Kershaw informed the committee that:
Our current attrition as at 31 December 2023 was 4.2 per cent for police, 5.8per cent for our PSOs [Protective Service Officer] and 7.6 per cent for our unsworn. Overall that was 6 per cent. Depending on what state you go to, there are varying percentages, but we've been quite successful in talking to people who are thinking of leaving.
2.24Ms Charlotte Tressler, Chief Operating Officer, provided further detail:
In 30 June 2023 we had 444 separations, and the voluntary attrition rate was 6.3 per cent. That was a slight increase on the year before, which was 6.1 per cent, but, happily, as the commissioner's reported, for 31 December 2023 we've seen our attrition drop slightly across all of the cohorts of our members, and that rate is now at 6 per cent. To put it in context, it's also important to note that while we had the 444 separations we had 787 commencements in the last financial year. Overall we've increased the number of staff.
Gender composition
2.25In 2021, the AFP announced an ‘aspirational target’ of 30 per cent sworn-female cohort by 2028. Ms Tressler updated the committee on progress and detailed the challenges:
We had set an aspirational target for the 30 per cent by 2028, but our sworn female recruitment does remain a challenge for us. Whilst we have achieved incremental improvements, it is something we're still working towards. To give you more context, for example, for our police women we have seen those improvements in our sworn female representations. When I started with AFP, it was around 24 per cent. We are now at 26. We are very confident we will get to the 30 per cent for our sworn police by 2028. What we have seen, however, are some challenges in our PSO workforce. That's where we are needing to and are, indeed, looking at strategies that we can employ to really drive up our female representation in our PSO workforce. Some of the challenges that we've had for our PSOs have included that we've had a higher level of attrition from our female members. A number of them look to transition to police roles. Our females do transition to police roles, so unfortunately that has a negative effect on PSOs. We do have some challenges in attracting women to our PSO roles. That's something that we are very focused on shifting.
2.26Mr Kershaw added information on the number of women in senior roles:
One other point is that I'm going to say that we are the leader in this country on SES women in senior roles in the AFP. 40.4 percent of our SES are women. Obviously we are continuing to work on getting better to parity and beyond. Just so that you know, that's out of a headcount of 99, so it's a good sample size. We've been working our way upwards. We had a slight downturn from 42.7 per cent in 2021-22 to 40.4 per cent in 2022-23, so we're watching that one carefully.
Staff survey
2.27Noting the 2022 staff survey indicated, among other things, that there was room for improvement in relation to trust and communication issues with senior leadership, the committee asked for an update on what actions have been taken to improve the results in these areas.Ms Tressler informed the committee that:
There's a lot that the commissioner has been driving in relation to our staff survey outcomes. We have had a particular focus around communications and also our change management policies. The strategy and performance board have passed new requirements around how we engage with our staff when it comes to significant changes in the workplace. The commissioner also did a restructure last year and brought the communications team into his direct line so that he could ensure that he was driving appropriate communication through the organisation. We've also been working with leaders to build their skills on communicating with their staff. Ultimately it's not just about pushing communications down; it's really important that we're doing that at all levels as well. That has been a particular focus.
2.28Ms Tressler added that the 2023 staff survey would be released shortly and the AFP will be looking at the results to see whether the actions taken have resulted in improvements.Mr Kershaw spoke about the AFP’s partnership with the Human Rights Commission and the program of work underway in relation to enhancing leadership capability:
I'll give you an idea of the impact that we are trying to make with that particular partnership. One is improved leadership capability to understand action, but also we're aiming at leadership with evidence base. AFP is an employer of choice for women and other marginalised groups. Leaderships in regional commands are empowered with evidence for culture change decision-making. AFP strengthens its diverse and inclusive workplace culture. On recruitment and retention, AFP has baseline data and stronger understanding of prevalence for impactful action across the career life cycle. Innovation: AFP leads among security agencies around innovation, diverse and inclusive workplace culture, including leadership uplift.
Those headings are recruitment, leadership, intersectionality, recruitment and retention and innovation. It's having the independent agency who can question our status quo, challenge us a lot and told us to account. We've written my commissioner priorities into this, and then the milestones. It will be measured, and we'll be able to report against that framework.
AFP performance framework
2.29During 2022-23, the AFP measured its performance through three outcomes:
Outcome 1: National and International Policing;
Outcome 2: ACT Policing; and
Outcome 3: Specialist Protective Services and International Policing Missions.
2.30Outcome 2 is covered in a separate annual report by ACT Policing.
2.31In its annual report and at the hearing, the AFP noted the increasing complexity of AFP investigations. Demonstrating this complexity are changes in the mix and quantum of investigative efforts, for example, the increase in cybercrime was noted:
…between 2021-22 and 2022-23 the amount of investigation hours dedicated to cybercrime increased by 40% with a 50% increase in the number of employees working on cybercrime issues.
2.32Mr Nicholls provided a further example to illustrate the length and complexity of some cases:
…a lot of these investigations are quite complex. They take a long time. We've got offenders offshore. Only on 2 November we assisted the Turkish national police with an overt operation that resulted in a high-value target being apprehended and a number of other high-value targets being apprehended. That just didn't happen overnight. There's a lot of complexity there. In my experience, approaching 40 years of policing across a number of jurisdictions, the AFP are involved in some very, very complex, very long-standing investigations.
2.33The annual report includes another case study which illustrates the complexity and length of time some cases can take. Operation Gain-Kungur commenced in 2017 to investigate a major transnational serious and organised crime group responsible for sending large volumes of illicit drugs to Australia. The operation focused on the key high-level figures which required intelligence collection and careful liaison with overseas partners over several years. The operation resulted in the extradition of two alleged leaders of a TSOC syndicate to Australia in 2022 to face charges in relation to illicit drugs and money laundering. Illustrating the complexity, the overseas partners for that operation included national police agencies from China, Myanmar, Thailand, Hong Kong, Malaysia, Vietnam, Cambodia, Korea, Japan, Indonesia, New Zealand, the USA and the Netherlands.
2.34In addition to this context, Ms Gale also cautioned that when looking at some results in the annual report, for example of offenders charged, the measures are not solely the number of charges. Inputs including forensics, intelligence and the international network which focus on disruption should be factored in to provide a complete picture. Ms Gale provided the following illustration:
If you look at the return on investment from our international disruptions, which are over 80 per cent of what our network does, it also contributes to the work of our organisation.
Performance targets and results
2.35All performance targets were reported as achieved except ‘high community confidence’ under Program 1.1. The following figure, reproduced from the annual report, summarises the performance measures, targets and results.
Figure 2.1AFP performance results in 2022-23
Source: Table reproduced from AFP, Annual Report 2022-23, p. 23.
2.36In relation to the ‘high community confidence target’, the annual report notes:
While we did not meet our target for high community confidence, the 2022-23 result was consistent with the average for the previous 5years. Importantly, only 4% of survey respondents reported having low confidence in the AFP.
2.37The annual report explained that:
The AFP will report on a restructured community confidence measure in the 2023-24 AFP Annual Report. Community confidence will be defined as the proportion of respondents assessing their overall confidence in the AFP at 6or higher (which is a reduction from the standard of 8 or higher out of 10in 2022-23), with increased targets set for both the Australian public (85 per cent) and the ‘informed public’ (90 per cent) which is defined as those who self-assess their understanding of the AFP at 7 or higher out of 10.
2.38Positive results that are noteworthy include the following:
Return on investment – transnational, where the result of 45.9 clearly exceeded the target of one, reflecting ongoing effective targeting of organised crime and prevention of drug-related harms throughout Australia. The result was also better than the previous year (16.6) and is based on benefits of $10.8 billion and costs of $0.2 billion.
Return on investment – International, which measures the harm of drugs seized internationally with the AFP’s assistance against the cost incurred at all AFP international posts. The 2022-23 result of 70.6 is substantially above the target of one. This is based on 66 tonnes of drugs and precursors, preventing $10.9 billion is harm to the international community; and AFP international post costs of $155 million.
Return on investment – assets confiscation, where the result was 2.6 against a target of one, which is comparable to the previous year. In 2022-23 there was a total cost of $26.5 million and a total benefit of $68.7 million of confiscated/forfeited assets, the Criminal Assets Confiscation Taskforce’s (CACT) highest result to date.
2.39In 2019, the AFP Commissioner set a five-year target of $600 million for assets restrained. As at 30 June 2023, the CACT has restrained in excess of $940 million in assets. These restraints may then be forfeited to the Commonwealth, with the liquidated assets going into the Confiscated Assets Account. Money from the Confiscated Assets Account is redistributed by the Australian Government to fund crime prevention, law enforcement and community safety measures.
2.40Mr Kershaw informed the committee in broad terms about a significant asset confiscation:
Without going into the technical details, we were connecting the electricity used in the house to run the computer and, therefore, tainting the house as an instrument of the offence. We settled with that individual, and they no longer have that house. That is some of the innovation our criminal assets team have been pushing. That $350 million was in one financial year. I set the target, I think, for five years at $600 million. We've hit $1 billion already over four years, and it's climbing.
2.41Mr Kershaw added that in relation to asset confiscation:
One of the other areas we are looking is: how can we be even more innovative when it comes to child protection with the use of computers and other things as the instrument of the offence?
Conclusion and committee view
2.42The committee is pleased to report that it has not identified any major areas of concern in relation to the 2022-23 annual report and the committee takes this opportunity to thank the AFP and its officers for their service to the Australian community.
2.43As noted above, the committee recently tabled its report on its inquiry into law enforcement capabilities in relation to child exploitation. It was therefore interested to hear updated information on the ongoing work in this area. As noted in the committee’s inquiry report, the committee shares the concern of the AFP in relation to the effect of end-to-end encryption on reporting child exploitation. This will be an area the committee continues to monitor to see if there is the expected drop in reporting. The committee was pleased to hear that there are mechanisms in place to support victims of child exploitation such as for Operation Tenterfield so they can be kept informed of status of legal proceedings.
2.44The committee has recently commenced an inquiry into the capability of law enforcement to respond to cybercrime. Noting the establishment of the Joint Policing Cybercrime Coordination Centre and the launch of operations such as Operation Guardian, this will be an area of focus for the committee over the next reporting period.
2.45People are of course the AFP’s most important asset so the committee asked a range of questions on workforce issues. The continued roll out of the SHIELD program and the uptake of the services is important to protect the wellbeing of staff. The committee referred particularly to the need to support staff working on child exploitation in its recent inquiry report. However, the committee acknowledges that many other areas and aspects of police work are difficult and dangerous so a well designed support service for all staff is of critical importance.
2.46The 2022 staff survey pointed to areas for improvement, particularly in relation to communication and the AFP appears to have taken steps to improve the results. The committee will be reviewing the 2023 staff survey findings in order to see if the efforts have translated into improved results.
2.47The committee acknowledges the increasing complexity and long lead times of some cases which do not fit neatly into an annual reporting period. The inclusion of case studies containing details of particular operations is helpful to illustrate this aspect of police work.
2.48The committee was pleased to hear of the success of the Criminal Assets Confiscation Taskforce and the innovative paths being pursued by the criminal assets team.
2.49The committee thanks the AFP for providing a satisfactory annual report and commends the organisation for its work during the year.
Senator Helen Polley
Chair