Australia is increasingly at risk of “high-impact sabotage” from hackers linked to the Chinese government and military, according to Mike Burgess, head of the Australian Security Intelligence Organisation (ASIO). Speaking at a business forum in Melbourne, Burgess highlighted “unprecedented levels of espionage” and cautioned that the next five years could see cyber-enabled attacks targeting the nation’s critical infrastructure.
Burgess pointed to a single nation-state, widely understood to be China, for repeated attempts to breach Australia’s most sensitive networks, including water supply, transport systems, telecommunications, and energy grids. He noted that allied nations face similar threats. The Chinese embassy has been contacted for comment.
The ASIO chief identified two Chinese hacking groups, Salt Typhoon and Volt Typhoon, as key threats. Salt Typhoon primarily conducts espionage, infiltrating telecommunications networks to steal sensitive information. Volt Typhoon is considered more disruptive, probing infrastructure systems in preparation for potential future sabotage. Burgess warned both groups have actively tested Australian networks.
“These groups are highly sophisticated, using top-notch tradecraft to find networks, test vulnerabilities, and maintain persistent undetected access,” he said. “Once inside, they map systems in detail, preparing for potential sabotage at a time of their choosing.”
Burgess cautioned that authoritarian regimes are increasingly willing to disrupt critical systems to hinder decision-making, damage the economy, weaken defense capabilities, and create social unrest. Even minor network outages can have severe societal impacts, he said.
“Imagine if a nation-state were able to disable all networks nationwide, cut power during a heatwave, contaminate water supplies, or collapse financial systems,” Burgess said. “The disruption would be catastrophic.”
Espionage already carries a significant economic cost. Conservative ASIO estimates put the toll at A$12.5 billion ($8.2 billion; £6.2 billion) in 2023–24, including around $2 billion in stolen trade secrets and intellectual property from Australian companies. Burgess warned that private sector projects, negotiations, and investments are increasingly targeted to provide foreign companies with commercial advantages, while customer data remains at risk.
The ASIO chief urged urgent action to strengthen cyber defenses. “Hackers don’t just steal information, they actively prepare for potential sabotage,” he said. “Australia must protect its critical infrastructure and private sector networks to prevent catastrophic disruption.”
With espionage and sabotage emerging as tools of statecraft, Australia faces a rapidly evolving cyber threat landscape, prompting the government and private sector to act decisively to safeguard national security and economic stability.
