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Labor urged secrecy over terror funding cut

June 18, 2026

Thursday 18 June 2026
Paul Karp
The Finanical Review


 New disclosures reveal that the Albanese government sought to block the royal  commission into the Bondi attack from using documents revealing cabinet  deliberations about counter-terror funding cuts because they were ''current  and controversial''.
 
 Documents published by the commission show the secretary of Prime Minister  Anthony Albanese's department, Steven Kennedy, also wanted to block royal  commissioner Virginia Bell from considering discussions between the leaders  of national security agencies and between ministers and agency heads.
 
 The Coalition accused the government of a failed attempt at a political  ''cover-up'' through ''extraordinary'' secrecy overreach.
 
 The Commonwealth's submissions in support of the unsuccessful claim for  public interest immunity reveal the extent to which the Albanese government  prizes the secrecy of cabinet deliberations. In them, government lawyers  urged Bell not to force it to hand over documents about the proportion of  agencies' budget spent on counter-terrorism unless a ''strong and  compelling'' reason existed to do so.
 
 Bell ultimately ruled against the Commonwealth regarding Finance Department  and other documents relating to agencies' funding because she judged they  were necessary to determine if agencies performed to ''maximum  effectiveness'' in the leadup to the December 14, 2025, Bondi terror attack  in which 15 people were killed at a Hanukkah event.
 
 In submissions by three barristers led by Perry Herzfeld, SC, the  Commonwealth noted Kennedy's view that ''breach of the confidentiality of the  cabinet process would undermine the operation of cabinet decision-making and  prejudice [its] effective and proper functioning''.
 
 ''Further, the contents of the cabinet documents sought by the royal  commission are such that damage to the public interest is likely to result  from their disclosure ... This is because the topic of the cabinet  considerations recorded or revealed by those documents is both current and  controversial.
 
 ''The documents in question relate to events and matters that have been the  subject of extensive political and social debate and are of significant  public interest including by reason of the present royal commission.'' In his  statement, Kennedy urged cabinet secrecy should also extend to the secretaries  committee on national security, composed of department and agency heads, who  discuss matters before the national security committee of cabinet including  agency budgets.
 
 Coalition home affairs spokesman James Paterson said it was ''extraordinary''  the Albanese government claimed cabinet confidentiality for these meetings of  a body ''which is not a committee of cabinet nor is it attended by any  cabinet minister''.
 
 ''Had they been successful it would have impeded the work of the royal  commission and kept the public in the dark about critical discussions about  terrorism funding prior to Bondi. In opposition Labor promised more  transparency but they are plumbing new depths of dubious secrecy claims even  about our worst-ever terrorist attack. They should co-operate fully with the  royal commission like the prime minister promised, not engage in a cover-up  to protest their political interests.'' The Financial Review first revealed  in May the Commonwealth had claimed public interest immunity over sections of  Australian Security Intelligence Organisation director-general Mike Burgess'  statement about funding.
 
 A claim of public interest immunity allowed Bell to inspect the documents to  decide if she needed them for her inquiry, but urged her not to formally  accept them into evidence.
 
 In her interim report, Bell said although overall funding for national  intelligence community agencies increased in the five years to 2024-25, the  inquiry's review of classified material revealed ''the proportion of funding  allocated to counter-terrorism significantly declined across the NIC over the  period from 2020 to 2025''. In rulings dated April 8 and 21, Bell ruled the  Commonwealth had to hand over Finance Department and Australian Federal  Police documents relating to counter-terrorism funding, but agreed to keep  the documents out of the public eye. In a third ruling dated June 9, Bell  similarly ruled against the Commonwealth with respect to redacted sections of  Burgess' statement.
 
 A government spokesman said the Commonwealth ''is supporting the royal  commission to undertake its vitally important work'' including by providing  redacted versions of witness statements.
 
 ''Redactions in statements are applied in some circumstances, for example  where information is relevant to ongoing criminal proceedings, includes  security classified information, and/or information relates to cabinet  confidentiality,'' he said.
 
 ''It is not appropriate to comment on evidence that has been provided to the  royal commission noting its ongoing examination.''

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