- Introduction
The Bill and its referral
1.1On 7 February 2023 the Attorney-General, the Honourable Mark Dreyfus KC MP, wrote to refer the Inspector-General of Intelligence and Security and Other Legislation Amendment (Modernisation) Bill 2022 (‘the Bill’) to the Committee for inquiry and report. The Attorney-General originally requested that the Committee present its report by 10 March 2023; in subsequent discussions the Attorney-General agreed that the Committee report by 17 March.
1.2The Bill would amend the Inspector-General of Intelligence and Security Act 1986 (‘IGIS Act’) for the purpose of enhancing oversight of Australia’s intelligence agencies. This would include additional powers for the Inspector-General of Intelligence and Security (IGIS) to enter and remain on intelligence agency premises, to clarify whistleblowing arrangements, and to enhance information sharing provisions.
1.3In his second reading speech, the Attorney-General said:
The Inspector-General of Intelligence and Security Act was enacted in 1986 and was designed for a smaller agency and a different Commonwealth integrity activity framework. This bill will enhance the Inspector-General's oversight of the agencies within its existing jurisdiction, ensuring Australia's oversight functions are commensurate with modern national intelligence community functions. This will provide the public with greater assurance that Australia's intelligence agencies are subject to robust oversight and integrity.
1.4The enactment of the Bill would also implement two recommendations of the 2019 Comprehensive Review of the Legal Framework of the National Intelligence Community (the ‘Richardson Review’) to:
- prevent the head or deputy head of an organisation within the remit of the IGIS’ oversight from being appointed to the role of IGIS immediately following their term; and
- ensure that the IGIS can consider employment-related grievances raised by employees of the Office of National Intelligence (ONI).
- In addition, the Bill would amend the National Anti-Corruption Commission Act 2022 following commencement to clarify the information sharing relationship between the Integrity Commissioner and the IGIS.
Conduct of the inquiry
1.6The Committee announced its inquiry on 10 February 2023 and invited submissions addressing the terms of reference by 17 February 2023.
1.7The Committee received 4 submissions and 1 supplementary submission. Appendix A sets out a list of submissions received. The Committee notes the short deadline for submissions and extends its appreciation to submitters who provided contributions in the short timeframe.
1.8The Committee held a public hearing on 3 March 2023. Appendix B sets out a list of witnesses who appeared at the public hearing.
1.9Copies of the submissions, the transcripts from the public hearing and links to the Bill and Explanatory Memorandum can be accessed at the Committee’s website.
Report structure
1.10This report comprises three chapters:
- The remainder of Chapter 1 contains an overview of the intelligence community and the Committee’s previous consideration of related matters in the Intelligence Oversight and Other Legislation Amendment (Integrity Measures) Bill 2020.
- Chapter 2 outlines the key provisions of the Bill and the evidence received to the inquiry.
- Chapter 3 sets the Committee’s comment on the Bill and its recommendations.
Overview of intelligence and intelligence oversight
1.11Australia’s intelligence agencies are collectively known as the National Intelligence Community (NIC). The NIC includes the:
- Australian Criminal Intelligence Commission (ACIC)
- Australian Geospatial-Intelligence Organisation (AGO)
- Australian Signals Directorate (ASD)
- Australian Security Intelligence Organisation (ASIO)
- Australian Secret Intelligence Service (ASIS)
- Defence Intelligence Organisation (DIO)
- ONI.
Also included in the NIC are the intelligence functions of the Australian Federal Police (AFP), Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Department of Home Affairs.
1.12Two agencies, AGO and DIO, sit under the Defence Intelligence Group (DIG) in the Department of Defence. These agencies support Australian Defence Force (ADF) operations, capability and policy development, as well as the performance of intelligence functions.
1.13Like this Committee, the IGIS has oversight of most, but not all, of the NIC. The IGIS Act outlines IGIS oversight of six of the NIC agencies: AGO, ASD, ASIO, ASIS, DIO, and ONI. The IGIS also has oversight of certain functions of the ACIC and the AFP.
1.14While there have been a range of external reviews of intelligence oversight, including Royal Commissions in 1974 and in 1983, there were two recent major reviews that altered the landscape of the NIC. These reviews were the 2019 Richardson Review and the 2017 Independent Intelligence Review (IIR).
1.15A full description of the history of intelligence reviews can be found in Appendix C of this Committee’s Advisory Report on the Intelligence Oversight and Other Legislation Amendment (Integrity Measures) Bill 2020.
Committee’s consideration of the Inspector-General of Intelligence and Security and Other Legislation Amendment (Integrity Measures) Bill 2020
1.16The provisions of the Intelligence Oversight and Other Legislation Amendment (Integrity Measures) Bill 2020 (‘Integrity Measures Bill’) sought to implement some of the main recommendations of the Richardson Review. The main amendments of the Bill included:
- expanding the oversight of the IGIS to the intelligence functions of AUSTRAC and the ACIC.
- expanding the oversight of the PJCIS to the intelligence functions of AUSTRAC.
- amendments to the IGIS Act to improve clarity, modernise drafting expressions and remove redundant provisions, as well as amendments to address certain limitations in the IGIS’ oversight functions and powers in order to strengthen the integrity of inquiry processes.
- Amendments to the IGIS Act to strengthen the Inspector-General’s oversight powers proposed in the Integrity Measures Bill included:
- Qualifications for appointment to the role of Inspector-General.
- Amending definitions related to ‘permanent resident’.
- Ensuring the IGIS can access information to fulfil its functions.
- Clarifying access to employment related grievances for ONI and DIO.
- The Integrity Measures Bill was referred to the Committee for review. Much of the evidence given to the review, and also the Committee’s consideration, focused on the expansion of oversight of the IGIS and the PJCIS. The majority of submitters supported the expansion of oversight and indicated their views that such an expansion would not result in excessive duplication of functions. Additionally, submitters expressed concern about the increased workload of this oversight responsibility particularly for the IGIS.
- The Committee’s report, presented in February 2022, made five recommendations. Two recommendations were directed to the further expansion of oversight powers for the IGIS and PJCIS to cover the entirety of the NIC. One recommendation was directed to the retention and destruction of intelligence-related material for AUSTRAC and the ACIC, one recommendation related to the convening of an intelligence specific Integrity Agency Group, and the final recommendation was that the Bill be passed following implementation of the other recommendations in the report.