COMMITTEES

Mr WALLACE (Fisher) (09:11): On behalf of the Parliamentary Joint Committee on Intelligence and Security, I present the committee's advisory report on the Australia's Foreign Relations (State and Territory Arrangements) Amendment Bill 2026. Report made a parliamentary paper in accordance with standing order 39(e). Mr WALLACE: by leave—I rise today to present a report on behalf of the Parliamentary Joint Committee on Intelligence and Security for its review of the Australia's Foreign Relations (State and Territory Arrangements) Amendment Bill 2026.

The bill was referred to the committee by the Minister for Foreign Affairs on 2 July 2026 for inquiry and report. The committee received 11 submissions from a range of stakeholders, including universities, local government representatives, academics and relevant Commonwealth agencies, and held a public hearing in Canberra on 6 August 2026. The bill seeks to strengthen, streamline and clarify the operation of Australia's Foreign Arrangements Scheme and implements recommendations arising from the 2025 independent review led by Rosemary Huxtable AO, PSM.

The scheme, established under the Australia's Foreign Relations (State and Territory Arrangements) Act 2020, provides a framework through which the Commonwealth can maintain visibility of and, where necessary, manage arrangements between state and territory entities and foreign entities that may affect Australia's interests. A central feature of the bill is the proposed shift from a focus on Australia's foreign relations to a broader concept of the national interest.

The committee carefully considered evidence on this proposal. While some submitters expressed concerns regarding the breadth of the term, others observed that Australia's economic security, national security, research capability, foreign policy and international engagement are increasingly interconnected. The committee concluded that the proposed amendments more accurately reflect the contemporary strategic environment and will allow foreign arrangements to be assessed against the full range of Australia's national interests.

The committee also examined proposed reforms intended to reduce regulatory burden and better focus the scheme on higher risk activities. These include introducing a one-step notification process for non-core arrangements, reducing approval requirements for minor variations of previously approved arrangements, clarifying institutional autonomy, provisions for foreign universities and improving the operation of the public register.

The committee notes the broad support from submitters for a more risk-based approach to regulation if implementation remains proportionate and practical. The inquiry also considered the bill's extension of the scheme to certain arrangements entered into through overseas campuses of Australian universities. The committee recognises the importance of transnational education and international research collaboration to Australia's economic and strategic interests.

At the same time, the committee considers it appropriate that the Commonwealth maintains visibility of foreign arrangements entered into through overseas campuses where comparable activities undertaken within Australia would already be subject to the scheme. Local government stakeholders similarly welcomed reforms intended to simplify compliance and reduce unnecessary administrative burden.

The committee agrees that maintaining a risk based framework is particularly important given the diversity of local councils and the generally low-risk nature of many local-government international-engagement activities. Throughout the inquiry, submitters emphasised that many of the bill's anticipated benefits will depend on the content of the rules and the quality of implementation guidance provided by the Department of Foreign Affairs and Trade.

The committee agrees that clear guidance, consultation and outreach will be important to ensure the scheme operates efficiently and that intended compliance savings are realised in practice. Ultimately, the committee found broad support for the policy objectives of the bill. The committee considers that the amendments strike an appropriate balance between maintaining Commonwealth visibility and oversight of foreign arrangements that may affect Australia's national interests, while reducing unnecessary regulatory burden for lower risk activities.

Accordingly, the committee has made one recommendation—that the Australia's Foreign Relations (State and Territory Arrangements) Amendment Bill 2026 be passed by the parliament. I thank the Chair, Senator Ciccone, committee members and all those who contributed to the inquiry through submissions and evidence at the public hearing, I commend the report to the House.