Hacking threats to Australia's future submarine project highlight the need to bolster cyber security, independent Senator Nick Xenophon says.
Senator Xenophon says reports of Russian and Chinese spies attempting to hack submarine builders in France and Germany show how vulnerable sensitive defence information can be.
"We could have the best defence forces in the world but unless we have cyber security that goes with it, it means our defence and our troops will be vulnerable," he told AAP on Monday.
According to media reports the hacking attempts have targeted submarine builders in Germany, France and Japan bidding for the $20 billion contract to build Australia's new fleet.
The bidders are holding highly sensitive information about the Royal Australian Navy's technical requirements for its new-generation subs.
One report says Japanese government officials believe China is responsible for cyber attacks on their classified information while German shipbuilder TKMS has reported fending off up to 40 hacking attempts a day.
South Australian Liberal Senator Simon Birmingham says the government is taking any possible cyber threats seriously.
He told the ABC that every proper precaution would be taken to protect the sensitivity of defence information.
Senator Xenophon said Australia was yet to appreciate that cyber security could compromise national security and he planned to call for a Senate inquiry.
"We need to be sure that any company that we're dealing with when it comes to defence has the most thorough cyber security in place," he said.
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