Funding Cuts to Australian Counter-Terrorism Unit Raise Questions After Bondi Attack
Australia’s national security posture is under renewed scrutiny following revelations that a dedicated federal police surveillance team was disbanded due to funding shortfalls just weeks before the tragic Bondi Junction attack on December 14th. The decision to dismantle the Canberra-based unit, established under the Commonwealth High Risk Terrorist Offender regime, has ignited a debate over resource allocation and preparedness in the face of a growing threat landscape.
The decision to wind down the squad was made late last year, according to reports, after a senior Australian federal Police (AFP) figure informed staff that “current budget pressures and the lack of certainty in relation to ongoing funding has limited our ability to fill vacancies.” Correspondence obtained by The Nightly indicated that team members were informed their positions would be impacted,with funding redirected to the AFP’s Counter Terrorism and special Investigations Command.
While funding for eight positions was tentatively confirmed for the 2025-26 financial year – beginning in February 2025 – this fell short of the ten members considered necessary for optimal operation under AFP standards. A commander within covert and Technical Operations, Intelligence and Covert Services, reportedly communicated to affected staff in September that the lack of long-term funding certainty necessitated a review of the team’s future “against competing resourcing and operational priorities.”
Sources within the AFP suggest the disbandment reflects a strategic shift prioritizing investigative work over proactive surveillance. “I think the AFP’s CTSI command decided the budget for that surveillance team had more benefit being poured into the investigative part, so they’ve decided to disband it and send the people back to ACT Policing,” a former senior officer explained. This raises critical questions about whether the loss of dedicated surveillance capabilities hampered the ability to monitor potential threats, particularly in the lead-up to the Bondi attack. “This question does arise: in light of the accused terrorists not being monitored, could that capability not have been directed to Sydney based counter terrorism surveillance?”
Prime Minister Anthony Albanese has defended his government’s commitment to national security, asserting that Australia’s security agencies, including the AFP, have “never had more funding than they have today.” When pressed on whether the AFP and the Australian Security Intelligence Organisation (ASIO) require additional resources to address radicalization and extremism, Mr. Albanese stated that “every single request from a security agency has been granted by my government.”
AFP Commissioner Krissy Barrett acknowledged the need for “constant re-prioritisation” in an increasingly complex security environment, but maintained that the AFP receives the necessary resources when required. Though, the agency declined to comment on specific surveillance capabilities when approached by The Nightly.
Concerns about understaffing within the AFP were previously voiced by the union representing federal police, who warned the Albanese Government of “chronic and worsening shortages” of counter-terrorism officers weeks before the Bondi attack. “Australia’s threat environment is not shrinking; it is indeed expanding rapidly. The men and women of the AFP stand on the front line every day, and they deserve the resources required to keep doing so effectively,” the AFP Association wrote in a November statement.
A closed-door investigation, led by former Defence and ASIO boss Dennis Richardson, is currently underway to examine the actions of security agencies and federal police prior to the Bondi shootings.The Albanese Government has resisted calls for a broader Royal Commission into the incident.
Parliament is expected to be recalled early in 2025, perhaps the week before Australia Day, to pass legislation aimed at cracking down on hate preachers and extremist organizations. Opposition leader Sussan Ley has been vocal in demanding a Royal Commission, a call echoed by four teal independent MPs – Monique Ryan, Kate Chaney, Sophie Scamps, and Zali Steggall – in a December 22, 2025, open letter to the Prime Minister. The letter acknowledged the government’s initial response but expressed concern that it “will not adequately address anti-Semitism in the community.”
The disbanding of the surveillance team and the subsequent scrutiny highlight the delicate balance between budgetary constraints and national security preparedness, a balance that will undoubtedly be at the forefront of policy debates in the coming months.
