‘Cutting Funding for Counter-Terrorism is a ‘Recipe for Disaster’: Experts Sound Alarm as Royal Commission Reveals Shocking Reduction in Resources Amid Growing Global Threat
- Alleged Bondi terror attack sparks royal commission probe, revealing ‘significant’ reduction in counter-terror budgets since 2020
- Despite overall 31% increase in funding for National Intelligence Community agencies, counter-terrorism resources plummet
- Experts warn of ‘egregious error’ as government prioritises counterintelligence over counter-terrorism amid growing global threats
- Prime Minister Anthony Albanese defends funding for intelligence services, pledging to adopt all royal commission recommendations
The revelation that Australia’s counter-terrorism resources have been slashed despite a growing global threat is a “recipe for disaster”, experts warn, as the Royal Commission on anti-Semitism and Social Cohesion’s interim report sparks a fierce debate over the government’s priorities.
The report, which probed last year’s alleged Bondi terror attack, found that funding for National Intelligence Community (NIC) agencies grew from $10.9bn in 2020-21 to $14.3bn in 2024-25 – an overall increase of 31 per cent.
However, despite this boost, the proportion of funding allocated to counter-terrorism significantly declined across the NIC over the same period.
The Australian Security Intelligence Organisation (ASIO) alone received a 37 per cent funding increase, but the agency’s focus has shifted towards counterintelligence – rooting out spies and blocking foreign espionage efforts.
ASIO chief Mike Burgess revealed that the agency is prioritising counterintelligence, sparking concerns that the government is taking its eye off the ball when it comes to counter-terrorism.
The Prime Minister, Anthony Albanese, defended the funding for intelligence services, saying that every agency has more funding today than when his government was elected in 2022.
However, Opposition Leader Angus Taylor was quick to pounce on the report’s findings, accusing the government of making an “egregious error” by allocating money away from counter-terrorism.
The Royal Commission’s report comes at a time of heightened global tensions, with the October 7 attacks on Israel in 2023 increasing the risk of terror attacks.
Experts warn that cutting funding for counter-terrorism is a “recipe for disaster”, and that the government’s priorities are woefully misplaced. “It’s extraordinary that the government would choose to reduce counter-terrorism funding at a time when the threat is growing,” said one security analyst.
“This is a clear example of the government’s priorities being wrong, and it’s a decision that could have serious consequences for national security.”
Analysis: What This Means for Australia
The reduction in counter-terrorism funding has serious implications for Australia’s national security. With the global threat of terrorism on the rise, it is imperative that the government prioritises counter-terrorism efforts.
The Royal Commission’s report highlights a disturbing trend of complacency, and the government’s decision to allocate money away from counter-terrorism is a clear example of this.
As one expert noted, “Counter-terrorism is not just about responding to attacks, it’s about preventing them from happening in the first place. By cutting funding, the government is essentially taking a step back and hoping that nothing happens.”
Law enforcement insiders warn that the reduction in funding will have a direct impact on the ability of agencies to effectively prevent and respond to terror attacks.
“It’s not just about the money, it’s about the resources and the personnel,” said one insider. “When you cut funding, you’re essentially cutting the capacity of agencies to do their job effectively.
It’s a false economy, and it’s a decision that will ultimately put Australian lives at risk.”
Industry observers believe that the government’s decision to prioritise counterintelligence over counter-terrorism is a misguided one. “Counterintelligence is important, but it’s not a replacement for counter-terrorism,” said one observer.
“The government needs to get its priorities straight and start taking the threat of terrorism seriously. This is not just about national security, it’s about public safety.”



