Announcement Date
28 November 2024
Link to Announcement
Transport Security Amendment (Security of Australia’s Transport Sector) Bill 2024
Problem Being Addressed
Security of Australia’s transport sector is regulated through the transport security legislative frameworks which includes the Aviation Transport Security Act 2004 (ATSA), the Maritime Transport and Offshore Facilities Security Act 2003 (MTOFSA) and supporting regulations. The transport security legislative frameworks require the transport sector to mitigate the threat of unlawful interference, such as terrorism, and serious crime within an entity’s physical boundary or geographical location.
However, the limited focus of the transport security legislative frameworks does not reflect the new or emerging threat environment nor the range of risks the Australian transport sector faces. There is a growing number of all hazards security threats, particularly risks of cyber incidents, increasing the need to prepare for, mitigate, and respond to these threats.
Proposal
This Impact Analysis considers four options to meet increased all hazard security risks for the aviation and maritime transport sectors.
Option 1: maintain the status quo.
Option 2: encourage industry to voluntarily uptake all hazards risk management.
Option 3: switch on critical infrastructure risk management program (CIRMP) obligations for ‘critical aviation assets’ and ‘critical ports’ under the Security of Critical Infrastructure Act 2018, requiring a small subset of critical aviation assets and critical ports to establish, maintain, and comply with a written risk management program.
Option 4: (the preferred option): amend the transport security legislative frameworks to enact mandatory security obligations.
Under Option 4, the introduction of the all hazards security frameworks are expected to proactively address and mitigate material risks and hazards, thereby reducing the likelihood and severity of incidents and disruption to supply chains across the economy. Given the increasing frequency of all hazards security incidents in the aviation and maritime transport sectors, the likely benefits to the economy of Option 4 are expected to be more than the direct cost of regulation over time (indirect costs may be passed on to consumers).
Assessed Impact Analysis Outcome
Good practice
Assessment Comments
The IA addresses the seven IA questions and follows an appropriate policy development process commensurate with the significance of the problem and magnitude of the proposed intervention. In particular, the IA provides a structured assessment of the extent to which the preferred option will deliver a net benefit and achieve the stated objectives.
Regulatory Burden
The Department of Home Affairs estimates the regulatory burden from implementing Option 4 will result in one-off costs of $190 million across the aviation and maritime sectors, and ongoing average annual costs of $115 million. The cost to each individual entity will be determined by their existing maturity, and the size and complexity of their operations. Costs are likely to be lower for entities with mature security practices in place, or for small businesses.