Australia's Foreign Relations (State and Territory Arrangements) Amendment Bill 2026

Mr THISTLETHWAITE (Kingsford Smith—Assistant Minister for Immigration and Assistant Minister for Foreign Affairs and Trade) (16:28): I thank members for their contributions to this debate. Australia's prosperity and security in international standing are strengthened by international partnerships entered into by our states, territories, local governments and universities, and the government encourages and supports that engagement.

Whether they're in research, education, trade, culture or other fields, these connections deliver substantial benefits to communities across Australia. As the House has recognised, international engagement now takes place in a more complex strategic environment than was the case even a decade ago. That's why Australia requires a framework that supports beneficial engagements whilst ensuring that risk to our foreign policy and broader national interests can be identified and managed appropriately.

The Foreign Arrangements Scheme has fulfilled that role since 2020. The independent review of the foreign relations act concluded that the scheme has provided an effective mechanism for visibility of foreign arrangements. It's enabled subnational governments and universities to continue pursuing international opportunities with confidence.

At the same time, the review identified opportunities to improve the scheme's operation, reduce unnecessary burden and better focus regulatory efforts on areas of greater risk. The reforms before the House are practical, measured and proportionate in the ways that they achieve their objectives. They strengthen the framework by ensuring decisions are guided by a broader conception of Australia's national interest, including national security, economic security, foreign policy and broader strategic considerations.

The reforms provide more flexible tools for managing risk. They improve whole-of-government coordination through a carefully designed information-sharing framework and ensure that the scheme remains capable of responding to evolving forms of international engagement. At the same time, the bill reduces unnecessary regulation.

These changes will make the scheme easier to navigate and administer whilst maintaining appropriate oversight. Importantly, the bill reflects the principle that regulatory effort should be directed where it is most needed. I commend the bill to the House.

Question agreed to. Bill read a second time.