It isn't finished yet but the new multi-million-dollar headquarters of the Australian Security Intelligence Organisation (ASIO) will need further upgrading, according to the spy agency's annual report.
Overlooking Lake Burley Griffin, the ASIO headquarters is being built to accommodate the massive expansion of the agency since the 9/11 attacks and the subsequent decade-long war on terror.
There are now more than 1700 people working at ASIO.
"It is inevitable that additional capabilities will need to be added to the new building," the report, tabled in the Senate on Tuesday, says.
While the domestic spy agency says the building, last estimated to cost $602 million, will be finished by the middle of next year, staff won't start moving in until late 2012.
The report also says the agency's workload is now heavy, with a long list of emerging cyber threats from individual hackers, loose networks like Anonymous, and nations like China.
While the cyber threat is growing, the main concern remains terrorism.
"Some Australians continue to be drawn to the jihadist message," the report says.
"New extremist groups and individuals continue to emerge, and some seek to act in Australia or travel overseas to train or fight."
The report reconfirms Yemen, Somalia and the Afghanistan-Pakistan border as terrorist hotspots.
Yemen has long been a focus of ASIO, with reports that more than 20 Australians have headed there in the past 12 months in a bid to receive training in terrorism, only to fall under the watch of ASIO.
"While jihadist terrorism remains the most immediate security threat, ASIO remains attuned to the terrorist threat posed both in Australia and abroad," ASIO says.
The report warns that conditions in Australia "are conducive to the promotion of communal violence".
It goes on to suggest any terrorist attack on Australia "might quickly and unexpectedly unlock the potential for violence" across the community.
Alongside Islamists there is also a "persistent but small sub-culture of racist and nationalist extremists in Australia".
ASIO raises the possibility of a "lone actor" or "autonomous group" from within the extremists turning violent.
In recent years these groups have used what the agency describes as "violent and provocative tactics" against police during demonstrations.
The tactics include throwing foul liquids and "invisible weapons" such as fish hooks at police.
While not wanting to be seen as alarmist, Attorney-General Robert McClelland said the report showed "we face real and serious threats to our national security".
"ASIO reports, including threat assessments and analytical advice to government and business, reached almost 3000 during 2010-11," Mr McClelland said in a statement.
"In addition, ASIO's legal team contributed to more than 50 litigation matters."
