Islamic extremism threat to Australia

New National Intelligence Chief Warns Islamic Extremism is a Top Threat to Australia

26 February 2026

2.9 MINS

Australia’s new intelligence chief warns Islamic extremism remains a top threat, as global rivalry intensifies and democratic resilience faces mounting pressure at home and abroad.

The newly appointed top intelligence official has warned Islamic extremism is “absolutely not a thing of the past”, that its “persistence is remarkable”, and that it is at the top of the agenda for the nation’s intelligence agencies following the antisemitic Bondi terrorist attack at the end of last year.

Office of National Intelligence (ONI) director-general Kathy Klugman, who used to serve in Anthony Albanese’s office as his principal international adviser, also backed her predecessor’s assessment that the “Indo-Pacific is now the epicentre of global systemic rivalry” and has warned that increasing domains of conflict threaten “democratic resilience”.

“The problem globally of Islamic extremist terrorism remains right up the top of the list when it comes to global extremist action and terrorism threats,” Ms Klugman told Senate estimates. “It remains a very close focus of many colleagues across the national intelligence community.” Ms Klugman also echoed her predecessor’s warning about threats to Australia from a more fractious and contentious world.

Indo-Pacific at the Centre of Global Rivalry

Previous ONI chief Andrew Shearer – who former prime minister Scott Morrison also appointed from his office – at the end of his term last year warned the world faced a “new axis of authoritarian powers” that rivalled the world’s democracies and that the strategic contest was increasingly being fought in grey-zone warfare. Ms Klugman said she shared those views.

“In early December, my predecessor updated this committee on Australia’s strategic environment, noting that the Indo-Pacific is now the epicentre of global systemic rivalry, the guardrails separating competition from confrontation and conflict are weakening, and crises are overlapping and intersecting, bringing threats onshore faster,” she told Senate estimates.

“This summary reflected the considered view of the Office of National Intelligence.

“Those core judgments still stand even as we see strategic competition intensifying, warning times shortening, complex risks manifesting in new ways, and we see the international environment becoming more characterised by uncertainty and by disorder.”

A More Dangerous and Uncertain World

Ms Klugman said conflict continued to build up around the world and pointed to Ukraine, the Middle East, Taiwan and the South China Sea. “Surprise and rapid change are now more common as the rules-based order comes under much greater strain, increasing the risk of further shocks and of discontinuities,” she said.

“And as great power competition pushes more deeply into economic security, supply chains, and critical technology, these domains are becoming routine threats of contest.

“We also see increasing interstate rivalry, both encouraging a greater focus on military power and affecting efforts to forge multilateral solutions, including on climate change and health.

“Malign state behaviour, often involving collusion with non-state actors, also continues to manifest in espionage, interference, sabotage, and political influence operations. These pressures cumulatively test not only international norms, but social cohesion, economic wellbeing, and democratic resilience,” she said.

“And as great power competition pushes more deeply into economic security, supply chains, and critical technology, these domains are becoming routine threats of contest.

“We also see increasing interstate rivalry, both encouraging a greater focus on military power and affecting efforts to forge multilateral solutions, including on climate change and health.

“Malign state behaviour, often involving collusion with non-state actors, also continues to manifest in espionage, interference, sabotage, and political influence operations. These pressures cumulatively test not only international norms, but social cohesion, economic wellbeing, and democratic resilience,” she said.

Muslim nations are ‘doing better’ than Australia on tackling Islamic extremism. Sky News host Chris Kenny says he was “struck” by how Muslim nations are tackling Islam.

No ONI Role in Royal Commission Decision

Ms Klugman was also questioned about the antisemitic Bondi terrorist attack in December last year.

“Director-General, are you the expert that would have been advising the PM on whether or not to hold the royal commission into the Bondi attack?” Liberal senator Jessica Collins asked, referring to “experts” Anthony Albanese cited in his refusal at the end of last year to call a royal commission.

“No, Senator. The announcement of the royal commission predated the end of my medical leave and starting in the Office of National Intelligence,” Ms Klugman said.

“Okay. Is that something that the Office of National Intelligence would have done, though?” Senator Collins asked.

“I don’t think there’s a role for ONI there,” Ms Klugman said.

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Republished with thanks to The Australian Prayer Network. Image courtesy of Wikimedia Commons.

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One Comment

  1. 0420391077f8111996bb838f71e47c0f9bd9c371f65b3429541324068047dbf1?s=54&d=mm&r=g
    countess antonia scrivanich 26 February 2026 at 3:10 pm - Reply

    Welcome, Kathy Klugman. I wish you well in your new job to keep us safe from the Extremists within and the Enemies without .

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