Television Interview, NEWS24 First Edition

SUBJECTS: Annual Cyber Threat Report for 2025-26; Defence Estate Audit; USS Colorado

PETE STEFONOVIC, HOST: Joining us live this morning, Defence Minister Richard Marles. Good to see you this morning, Minister. So, how alarmed are you by these numbers?

RICHARD MARLES, DEPUTY PRIME MINISTER: Well, it is a significant increase and it's 1500 incidents that ASD have responded to over the course of the last financial year. As you've just reported, that's up 20%. And I think you also said over the last five years it's up by 36. And what that actually says to me is how much of an increase there's been in just the last year relative to the previous four. So, this is a significant increase. It is about AI. Malicious actors are now able to use AI to find vulnerabilities in the systems of organisations and companies and they're doing that to exploit them. And so it's really important that people are hardening themselves to that. And today what we're saying is that if you've got an old system in place, you've got to get rid of it. If you've got an old system which is attached to the Internet, it is effectively a gateway to a malicious actor. You've really got to prioritise hardening your system, even if that's at the expense of access to it. In other words, if you've got to take your system down for a day or two to harden it, do it. But also you've got to use AI as well. And there's a lot of AI products out there, there's a lot of information on cyber.gov.au which can help you use it, and that's really important in preparing and defending yourself in this environment.

STEFANOVIC: So, how can smaller businesses, small, medium-sized businesses afford that, though with the current climate of things? Can government help be provided?

MARLES: Well, there are AI products out there and there are pretty cost effective AI products out there. And as I say on cyber.gov.au there's a whole lot of information that's provided by ASD in respect of how to use AI yourself to protect your systems. It's really in respect of medium-sized businesses, which is where actually the damage is being done. I mean, what we've seen there is in terms of the cost of each incident, it's gone up by 45% in the last 12 months and that is an alarming increase. In fact, for larger organisations there’s a good news story here and that is that the cost of their incidents has gone down. And I think what that reflects is that if you do the work and if you're working with ASD, you can actually protect yourself against this threat. And we're seeing lots of companies do that. It's really getting through that next tier that we are focused on.

STEFANOVIC: The threats, is it the usual suspects? Russia, North Korea, Iran, China?

MARLES: Well, it is a combination, as we've said before, of actors that are operating in the grey zone. So, there are state actors here, but also a lot of cyber criminals. So, the short answer to your question is, yes, it is the suspects that we've had in the past who are engaging in this, but what's changed is that malicious actors now are able to use AI themselves and that certainly heightens the game, as it were, and it really means that people need to be using all the tools at their disposal to defend themselves.

STEFANOVIC: Ok, let's get to Vic Barracks. I've spoken to a couple of the protesters last week. Minister, were the weekend protests in Sydney against your sale of Victoria Barracks enough to dissuade you from that?

MARLES: Well, look, we understand that this is an emotive issue, but the fact of the matter is that what we are facing in respect to Victoria Barracks Sydney specifically over the next 10 years is a 200 million dollar bill to maintain this as a defence site. So, it's not money you would need to spend if it was used for a different purpose, but to maintain it as a defence site costs that, and we don't actually need it as a defence site. I mean, there is no one out there making the argument that Victoria Barracks Sydney is central to the defence of the nation. And that's my job, is to focus on how we defend Australia. There is, of course, a whole lot of history which is tied up at Victoria Barracks Sydney. We're very mindful of that. This is a site **the** heritage values of which are protected by law. None of these buildings are going to be moved. Indeed, the layout of the site is protected by law.

STEFANOVIC: So wouldn’t that actually do that point. Wouldn't that affect investment? So, you know, a possible investor, wouldn't they be spooked by a heritage listing?

MARLES: Well, it definitely does and that's the point here, when we list –

STEFANOVIC: – So, a sale might be difficult?

MARLES: Well, it just affects the sale price. But to be clear we're a fair way away from that. What we're doing now is moving defence personnel across all of these sites as quickly as we can. We gave ourselves two years to do that. In respect of Victoria Barracks Sydney, it's expected that most of the defence personnel will be off that site by the end of this year. And then it's put into the hands of the Department of Finance. And in respect to Victoria Barracks Sydney, given the iconic nature of that site, I would expect that it will take some time to work out its future, as it should. I mean it's an iconic site. But to go to your point, I mean we are budgeting across the entirety of the sites being disposed of, receiving about $1.8 billion. It's not actually that much money across the 67 sites. The reason for that is because there is a heritage overlay not just in respect of Victoria Barracks Sydney, but on a number of the sites - and that's important. But the point I really want to make in respect of heritage is this. Most members of the Australian Army have never been to Victoria Barracks Sydney. Most members of the Australian Army today are unable to go to Victoria Barracks Sydney. This is a site which is predominantly closed to Sydneysiders and Australians. We're talking about opening it up and celebrating its heritage much more. And so the story of the Australian Army is told to a much bigger audience.

STEFANOVIC: Minister, I got 30 seconds left. I do want to squeeze this one in because there's some news. The USS Colorado has been announced as the first US Navy class fast attack submarine to the Submarine Rotational Force – West which starts late next year. So, just briefly, what will this mean?

MARLES: Well, it's exciting. I mean the Submarine Rotation Force – West is happening. It's on track. That was a first real big milestone in terms of AUKUS to commence from the end of last year. There are American personnel at HMAS Stirling right now readying the site for this. And we now know that USS Colorado will be the first Virginia class submarine to rotate through HMAS Stirling.

STEFANOVIC: Okay, Defence Minister Richard Marles, appreciate your time. Thank you.

ENDS