The Albanese government has created a new unit in Treasury to inject intelligence insights into economic decision-making for the first time.
The new branch is working with intelligence agencies and international partners to identify and communicate trends, threats and opportunities for economic security.
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“Geopolitical tensions and conflicts around the world are a major driver of global economic uncertainty,” Treasurer Jim Chalmers told the Australian Financial Review.
“Economic security and national security are now almost indistinguishable.”
The idea of a “distinct economic security function” – including staff seconded from security agencies – was first raised in the Independent Intelligence Review that was made public last year. The review identified economic security as an emerging area of policy at a time of rising national security challenges.
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“Our pitch to international investors is not that we are immune from uncertainty but that we are well-placed to manage it and grasp the opportunities that flow from it,” he said, pointing to Australia’s well-regulated financial system, deep capital markets, and long track record as a reliable home for capital.
However, a recent report by the United States Studies Centre urged both government and business to urgently step up contingency plans to better navigate heightened risks from global crises.
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Australian businesses had been “sluggish” to prepare for geopolitical threats across the supply chain because of the complexity and costs involved, said the report.
Companies “should consider ‘war gaming’ different disruption scenarios to help them anticipate and plan for geopolitical pressure and supply chain disruptions”, it warned.
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It also said Australia was well-positioned to play a key role in targeted areas like critical minerals and supporting AI expansion through energy production and as a hub for data centres.
“Part of the solution is for government to think broadly about how Australia can plug holes in the global supply chain,” said Channer.
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