October 14, 2021

Multi-Association Letter to Australian Government on Critical Infrastructure Bill

October 14, 2021

The Hon. Karen Andrews MP

Minister for Home Affairs

Australian Parliament House

Canberra ACT 2600

Dear Minister,

The undersigned associations, which represent hundreds of technology and technology-enabled

companies, respectfully submit this letter on behalf of our member companies regarding the

Security Legislation Amendment (Critical Infrastructure) Bill 2020, hereafter “the Bill.” Our

members share the Australian Government’s commitment to protecting Australians and

Australia’s critical infrastructure against cyber threats. However, the Bill remains highly

problematic and largely unchanged despite extensive feedback from our organisations. Without

significant revision, the Bill will create an unworkable set of obligations and set a troubling global

precedent.

We are disappointed by the recent report from the Parliamentary Joint Committee on

Intelligence and Security (PJCIS)*, which recommended that the elements of the Bill which caused

the most concern for industry stakeholders – namely the government assistance powers granted

under Part 3A and incident reporting obligations -- be fast-tracked and pushed through as a

separate Bill, without further public consultation. As representatives of member companies that

include both Australian and international companies, we urge the Australian Government to

reject this recommendation and to seriously consider our recommendations below.

As drafted, Part 3A of the Bill provides the Australian Government with information-gathering,

direction and intervention powers that are not subject to reasonable due processes, which would

normally allow affected entities to appeal or have these decisions independently reviewed.**

While the Government asserts that this power is intended only as a measure of last resort to

address “cyber security incidents,” the Bill provides the Government with unprecedented and

far-reaching powers, which can impact the networks, systems and customers of domestic and

international entities, and should be subject to a statutorily-prescribed mechanism for judicial

review and oversight.

We are also concerned by the global impact that such a Bill will have and how it undermines the

values that Australia promotes internationally. The Australian Government has been a global

leader in policymaking around technology and security, specifically addressing threats posed by

companies that may be subject to extrajudicial direction by a government. The signal sent by

these measures is that these rules do not apply to Australia. This undermines the Government’s

good work internationally on these issues and sets a disturbing precedent for other governments

facing similar national security challenges. We strongly recommend the Australian Government

amend the Bill to provide for a statutorily prescribed right of appeal and review of the Part 3A

powers.

In addition, we once again reiterate our recommendation that the mandatory cyber incident

reporting timeline be extended from “within 12 hours” to “at least 72 hours” or “without undue

delay.” The mandatory 12-hour reporting timeframe diverges from global best practices and will

inhibit our ability to focus on truly critical incidents. Additionally, we recommend removing the

requirement to report “imminent” cyber incidents. Our member companies would collectively

block millions of threats a week; if required to report these the Australian Government would

likely be inundated with data. The current reporting requirements of the Bill will likely lead to the

reporting of inadequately contextualized information or misinterpretation of the event in a

situation where accuracy is of great importance, which will not provide useful or actionable

information to the recipient government entity.

Given the above, we once again reiterate our request that the Government reconsider its

proposed path forward immediately on these two issues and address the significant concerns

raised by industry. Our member companies prioritise cyber security, both within our own

businesses and for our customers, and we support the Australian Government’s goal to improve

cyber security in Australia. However, these two proposals would not accomplish that goal, would

have significant unintended consequences that would decrease security in practice, and would

set dangerous global precedents.

We strongly urge the Australian Government to consider the precedent the Bill sets for Australia’s

trade partners in addressing national security risks, as well as the challenges Australian

companies may face in other markets if these requirements are replicated by other governments.

We greatly appreciate your attention to our concerns and your consideration of our

recommendations, and we look forward to continuing to work with the Australian Government

as it seeks to reform laws on critical infrastructure cybersecurity, especially in shaping the

proposed Positive Security Obligations to be aligned with international standards.

Sincerely,

Information Technology Industry Council

Australian Information Industry Association

Cybersecurity Coalition

* Advisory report on the Security Legislation Amendment (Critical Infrastructure) Bill 2020 and Statutory Review of

the Security of Critical Infrastructure Act 2018 dated September 2021.

** We note there are limitations in judicial review under ‘original jurisdiction’ of this Bill and that independent

operational oversight from organisations - such as IGIS and the Ombudsman - is no substitute for ADJR Act review.