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The state of play — Government & Public Sector, 2026

State actors are targeting Australian Government networks for "state goals".

39% of the 138 ransomware incidents the ACSC responded to in FY2024–25 began with ASD contacting the entity to warn it of a possible incident. HWL Ebsworth's April 2023 compromise cascaded across 62 Commonwealth entities.

83%
year-on-year increase in ASD cyber activity notifications to Australian entities — more than 1,700 in FY2024–25. ACSC responded to over 1,200 cyber security incidents, an 11% increase.
ASD Annual Cyber Threat Report 2024–25
39%
of the 138 ransomware incidents the ACSC responded to in 2024–25 began with ASD contacting the affected entity to warn it of a possible incident.
ASD Annual Cyber Threat Report 2024–25
10%
of Australian notifiable data breaches in 2025 came from Australian Government agencies (118 of 1,205) — the third-highest sector, behind health (19%) and finance (13%).
OAIC Notifiable Data Breaches statistics, 2025
The trend

Why Government is in the crosshairs

Five shifts shaping the government threat environment — what attackers are doing and what regulators now expect agencies to demonstrate.

Government is the third-highest sector for notified data breaches

OAIC data puts Australian Government agencies among the most-notifying sectors: second in H2 2024 (17%) and third across 2025 (10%). ASD's 83% year-on-year increase in malicious-activity notifications, to more than 1,700, reflects a sustained, intensifying operational tempo.

State-sponsored actors are the persistent adversary

ASD's 2024–25 report is explicit that state-sponsored cyber actors target Australian government networks, critical infrastructure and businesses for "state goals" — cyber espionage, malign influence, interference and coercion, and pre-positioning for disruption — and "routinely target Australian government networks for cyber espionage purposes". In 2019 then-Prime Minister Morrison told Parliament that Australia's experts believed a "sophisticated state actor" was responsible for the attack on Parliament House networks.

Third-party contractors are the common entry point

OPM was breached via contractor KeyPoint Government Solutions. UK armed forces payroll data — up to 272,000 personnel, the Defence Secretary told Parliament — was exposed through a contractor-operated system. HWL Ebsworth's compromise affected 62 Commonwealth government entities through a single law firm breach. Service NSW lost 104,000 customers' data from 47 phishing-compromised staff email accounts.

DDoS and disruption — not just theft — are rising

ASD's ACSC responded to more than 200 denial-of-service incidents in 2024–25, up more than 280% on the previous year, and DoS/DDoS made up 16% of the incidents government entities reported. Adversary objectives now include visible disruption, not only data theft.

Detection is lagging discovery

ASD's finding that 39% of ransomware incidents in 2024–25 began with ASD contacting the affected entity tells you what the sector-wide detection gap looks like. Controls that look strong on paper are missing attacks in operation. Continuous validation is how "assume compromise" becomes operational, not rhetorical.

On the record

What regulators and experts are saying

Businesses and organisations must operate with a mind-set of ‘assume compromise’ and consider which assets or ‘crown jewels’ need the most protection.
ASD ACSC
Annual Cyber Threat Report 2024–25 fact sheet for businesses and organisations
October 2025·cyber.gov.au
Individuals often don't have a choice but to provide their personal information to access government services. This makes it even more important that agencies keep personal information secure and have an action plan in place should a breach occur.
Carly Kind
Privacy Commissioner
2025·OAIC
The longstanding failure of OPM's leadership to implement basic cyber hygiene, such as maintaining current authorities to operate and employing strong multi-factor authentication, despite years of warnings from the Inspector General, represents a failure of culture and leadership, not technology.
US House Committee on Oversight and Government Reform
The OPM Data Breach report
September 2016·oversight.house.gov
What is now required

PSPF requires a zero trust culture

PSPF Release 2026 requires a cyber security strategy and uplift plan aligned to the Guiding Principles to Embed a Zero Trust Culture — while ASD's Commonwealth Cyber Security Posture 2025 report shows only 22% of entities at overall Essential Eight ML2

Non-corporate Commonwealth entities must achieve Essential Eight Maturity Level 2 as the baseline for ICT security under the PSPF. The PSPF also requires a cyber security strategy and uplift plan aligned to the Guiding Principles to Embed a Zero Trust Culture. Maturity is tracked publicly through ASD's annual Commonwealth Cyber Security Posture report — the 2025 report found only 22% of entities at overall ML2 — and ANAO performance audits repeatedly probe the same controls. The Essential Eight comprises eight mitigation strategies, each assessed to ML2 across a detailed set of controls. State and territory governments operate under separate frameworks; NSW and Queensland policies require agencies to implement the Essential Eight.

Frameworks that apply
ASD Essential Eight Maturity Level 2

The full set of ML2 controls across eight strategies. The Commonwealth Cyber Security Posture 2025 report shows only 22% of entities at overall ML2.

Also in effect

A cascade of new obligations

Multiple new regulatory requirements are hitting simultaneously — each increasing the compliance burden and the consequences of failure.

PSPF — zero trust culture requirement

Jul 2025

PSPF Requirement 98 (in force since 1 July 2025, retained in Release 2026): a cyber security strategy and uplift plan, maintained in line with the ISM and the Guiding Principles to Embed a Zero Trust Culture. A policy requirement, not guidance. NodeZero tests whether access controls, segmentation and privilege boundaries hold against a real attacker.

Cyber Security Act 2024

30 May 2025

Mandatory 72-hour ransomware payment reporting for businesses over $3M turnover and responsible entities for critical infrastructure assets. Commonwealth and state bodies are excluded from the turnover test, but a government entity that is the responsible entity for a critical infrastructure asset is in scope, as are private providers of government services that meet the threshold.

Platform credentials

Why security teams trust NodeZero

ISM
Control-by-control
ASD controls
Essential Eight
Mapped ML1–3
Mandatory for Cth
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US defence industrial base program
310,332
Pentests run
7,013 orgs
Trusted by 7,013 organisations worldwide
Powers the NSA's CAPT program310,332 pentests4.7 Gartner

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