Secret attempts by foreign spies to influence Australia's politicians, media and diaspora communities will face harsh new penalties after Labor agreed to back federal government reforms.
Australian Security Intelligence Organisation chief Duncan Lewis has warned countries are trying to access classified information about the nation's global alliances and military, economic and energy systems.
A parliamentary committee on Thursday released a report into the controversial legislation, which now has bipartisan support provided almost 60 changes to the bill are made.
The draft laws are part of a Turnbull government push to tackle the growing threat of foreign states trying to wield influence in Australia.
The reforms were announced last year amid political donation scandals involving people with links to the Chinese government and heightened concerns about foreign powers influencing elections.
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While the government insists the laws aren't aimed at a specific country, they have sparked diplomatic tensions with China.
Under the bill, espionage, treason and treachery offences will be expanded, while acting with a foreign country to influence Australia's democracy will be criminalised.
The committee recommended journalists who are given classified information should be able to use an expanded public interest legal defence.
A journalist's prosecution will rely on consent from the attorney-general and confirmation from the head of a government agency the information used improperly was classified.
The government agreed to inserting protections earlier in the year after concerns were raised by media organisations that reporters could face lengthy jail terms for doing their job.
Attorney-General Christian Porter anticipates the amended legislation will pass parliament later this month.
"Even in the time that it has taken to consider the Espionage and Foreign Interference Bill, the threat environment has changed and become more acute," Mr Porter said in a statement.
Shadow attorney-general Mark Dreyfus is confident the government will back the committee's recommendations.
"It will ensure journalists are not going to be prosecuted under the new offences or the revised secrecy offences for simply doing their job," Mr Dreyfus told reporters in Melbourne.
The report also calls for a range of definitions to be clearer, including what constitutes a foreign political organisation.
The maximum penalty for secrecy offences would be reduced to from 10 to seven years' jail for conduct involving communication of information.
ASIO chief Mr Lewis last month said there are more foreign spies operating in Australia with the ability to inflict "catastrophic harm" than during the Cold War.
"Espionage, interference, sabotage and malicious insider activities can inflict catastrophic harm on our country's interests," he said.
