The Government says it will launch a dedicated Critical Infrastructure Centre.
According to the Attorney-General, George Brandis, it's mission will be to give national security assessments and advice to the government on critical infrastructure.
Mr Brandis says a trend towards privatisation and global supply chain arrangements mean key assets such as ports, electricity networks and water resources could be exposed to "sabotage, espionage and coercion".
Essentially, the Centre will advise the government on potentially vulnerable buildings, facilities and technologies - especially if they can be bought or sold on the market.
Paul Barnes, from the Australian Strategic Policy Institute, says the centre will be a central body advising all levels of government.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"One of the things we need to be able to do is understand which pieces of infrastructure need to be looked at in greater detail in terms of existing governance arrangements, information security arrangements that are in place. That's an issue that has to be developed in concert with local, state and Federal governments but also in terms of the private sector."
It was private sector asset sales which prompted the creation of the Critical Infrastructure Centre.
In 2015, the Northern Territory government leased the Port of Darwin for 99 years to a Chinese company, causing a diplomatic controversy in the Top End.
The Australian Defence Force uses Darwin Port and the United States military was unhappy about the decision, because it's also expanding its presence in the Northern Territory.
And last year, the government announced it would block the multi-billion dollar sale of electricity distributor Ausgrid to two Chinese companies.
The Treasurer, Scott Morrison, said it was a national security decision.
Dr Paul Barnes says Australia's infrastructure is vulnerable, but not only to other countries.
"Sabotage is only one type of threat. The existing issue is that we have such complexities in infrastructure systems. They're controlled by the internet, they're controlled by wirless connections. They can be disturbed by any sort of actor, be they human or climate. Floods will upset critical infrastructure just as easily and more effectively than any state actor or individual criminal action."
The Government says it will create a list of assets which are at an increased risk and also tell potential buyers which assets will attract more scrutiny.
In providing clarity to foreign and domestic buyers, the government will hope to avoid surprising potential foreign buyers - as in the Ausgrid decision.
Labor's Infrastructure spokesman Anthony Albanese says the government has taken too long to create the Centre.
"It's also important for investment certainty that that be identified in a coherent way. Under this government, it doesn't seem to have been the case. They've allowed, in energy for example, some assets to be sold, others not to be sold halfway through the process and I think that's created a great deal of concern."
But both sides of the political divide agree that while national security is important, there is also a need to attract foreign buyers.
