Australia Pledges $7.4B to Cyberwarfare in Defense Boost

(Bloomberg) — Australia announced one of its largest investments in intelligence and cybersecurity, moving to bolster its defense capability against the backdrop of a more assertive China and an expansionist Russia.

The incumbent Liberal-National coalition announced A$9.9 billion ($7.4 billion) in Tuesday’s budget for new positions, equipment and training for the country’s premier security agencies with a focus on cyberwarfare.

The government said the funding will create about 1,900 new jobs in the Australian Signals Directorate — engaged in electronic monitoring and surveillance of threats — over 10 years. The package was given the acronym Redspice, standing for Resilience, Effects, Defense, Space, Intelligence, Cyber and Enablers.

“This is the biggest ever investment in Australia’s cyber preparedness,” Treasurer Josh Frydenberg said in his budget speech to parliament, adding that it would boost Australia’s “capacity to prevent and respond to cyber threats.”

The center-right government has sought to elevate national security to a key pillar of its re-election strategy ahead of a ballot that must be held by May 21. It points to China’s growing military footprint in the Asia-Pacific region and Russia’s war on Ukraine to argue that now is not the time to vote for change.

Prime Minister Scott Morrison and his government have trailed the opposition Labor Party in opinion polls for months and defense is traditionally seen as a strength for conservatives.

Offensive Capabilities

The government says Redspice could triple the signals directorate’s offensive capabilities. Australia announced it would provide cybersecurity support and training to Ukraine’s forces following Russia’s invasion almost five weeks ago.

Morrison and his Defense Minister Peter Dutton have announced several major military investments in recent months, including a two-decade, A$38 billion expansion of troop numbers and a new submarine base on the east coast at a cost of at least A$10 billion.

In a speech Monday ahead of the budget, Morrison announced Australia would establish a Cyber and Critical Technology Intelligence Center to help “better anticipate and capitalize on emerging technologies.”

“Working with non-government R&D partners as well, we will be able to better fund, shape and deploy cutting-edge science, research and technology to deliver better capabilities into the future,” Morrison said.

(Updates story throughout)

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