The prime minister has defended the funding his government has invested in the nation's intelligence agencies, after the antisemitism royal commission interim report revealed a reduction in the proportion of Australian Security Intelligence Organisation (ASIO) funds allocated to counterterrorism in the five years leading up to the Bondi terror attack.
The interim report from the Royal Commission into Antisemitism and Social Cohesion — established in the wake of the Sydney attack — examines the role of the security agencies.
It has documented the money provided to National Intelligence Agencies, finding overall it grew by 31 per cent between 2020 and 2025, to a total of $14.9 billion.
Over that period, funding for the nation's chief domestic spy agency, ASIO, increased by 37 per cent.
However, the commission was able to review secret material to further interrogate the breakdown of the figures.
“Upon review of classified material, the Commission has observed that despite this overall increase, the proportion of funding allocated to counter-terrorism significantly declined across the National Intelligence Community over the period from 2020 to 2025,” the report stated.
A source familiar with the royal commission’s internal processes has confirmed to SBS News that the decline in counterterrorism spending was considered a significant concern that warranted further investigation.
Prime Minister Anthony Albanese has defended the way funds have been allocated since his government was elected in 2022.
"The report shows that funding for our security agencies has increased since we came to office," he said in an interview with SBS News.
Asked about the significant decline in counterterrorism as a share of overall funding, Albanese pointed to the broader funding envelope increasing.
"The report shows the opposite," he responded.
"The report makes it clear that there was no inadequacy when it comes to preventing terrorist acts as a result of government agencies."
The government has adopted all the report's recommendations that relate to the Commonwealth.
"I take some considerable comfort from the fact that it says there is no urgent action required in order to keep Australians safe," Albanese said.
Upon review of classified material, the Commission has observed that despite this overall increase, the proportion of funding allocated to counter-terrorism significantly declined across the National Intelligence Community over the period from 2020 to 2025.The interim report from the Royal Commission into Antisemitism and Social Cohesion
Chapter 8 of the report, which focused on legislative frameworks, stated that "no agency" had urged legislative reforms "to prevent, detect or respond to an attack of a similar nature to the Bondi attack".
It added that the current laws did not prevent "intelligence or law enforcement agencies from taking action that may have prevented the Bondi attack".
The commission did not reach a conclusion on whether there were intelligence failures or issues with police resource allocations, and security agencies are expected to be grilled on these potential factors in the months ahead.
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