ASIO Director General Mike Burgess has warned a terrorist attack in Australia remains likely in the next 12 months, in a blunt assessment of the security threat facing the country.
Mr Burgess delivered the warning before a parliamentary inquiry into extremism in Australia, which is examining the country's preparedness against both religiously-motivated and ideologically-motivated extremism.
He told the hearing that religiously-motivated extremists, as well as the "evolving" threat posed by extremists driven by nationalist and racist views, meant the terrorist threat level in Australia remained "probable".
"We anticipate there will be a terrorist attack in this country in the next 12 months and it could come from either ideology," he told the hearing.
"For me it doesn't really matter because they are both capable of conducting acts of violence and that's where we focus."
The parliamentary inquiry has been established to examine all forms of extremism in Australia, following a push from Labor frontbencher Kristina Keneally to investigate the rising threat of far-right extremism.
Mr Burgess told the hearing Sunni-based violent extremist remained the security agency's "major" concern, but growth in ideologically-motivated violent extremism remained a serious threat showing no signs of diminishing.
He also stressed that young Australians in particular had been found to be vulnerable to nationalist and racist views through radicalisation.
"Young Australians are being ensnared in racist, supremist and misogynist ideologies in a way that is deeply concerning," he told the hearing. "The average age of our investigate subjects is 25."
"More often than not they are young - well educated - articulate and middle class and not easily identified."
The ideological-extremism term adopted by ASIO is typically associated with far-right extremist groups both in Australia and around the world.
Mr Burgess said there is concern these ideologies continue to resonate with portions of the Australian population.
"It is the white supremacist - racist - narrative that does resonate with some Australians," he said. "Not all, but there are a number which it does and that is of concern."
ASIO boss says ideologically-motivated threat 'will not diminish'
Mr Burgess told the hearing the rising threat from this extremism had seen these groups and individuals increase from around one third of the agency's caseload to 40 per cent.
"ASIO anticipates the threat from this form of violent extremism will not diminish anytime soon," he told the hearing.
"The face of this threat is evolving, which poses further challenges for security agencies."
Mr Burgess said this reflected both an international trend and the security agency's decision to dedicate more resources to the threat.
He added that investigations into this extremism had occurred across Australia describing it as "more widely dispersed" than other forms of extremism, including in regional and rural areas.
"However it is important to put this threat in context ," he added.
"The National Socialist is not ISIL - the Grampians is not a caliphate."
The statement is a reference to an event in January, in Victoria.
Are Australia's proscription laws fit for purpose?
One of the terms of reference of inquiry is to determine whether Australia's listing laws are fit for purpose to address current and emerging terrorist threats.
In March, Australia listed the UK-based neo-Nazi group Sonnenkrieg Division on its list of banned terrorist organisations, marking the first right-wing terror organisation to be banned in Australia.
Prior to this, Australia had been the only Five Eyes country that had not proscribed a far-right group.
Previously, Islamic and other separatist groups made up the list of more than two dozen organisations banned under Australia's criminal code.
Home Affairs Deputy Secretary Chris Teal said listing an organisation was an important symbolic action, though one that must meet the legislative threshold.
"The ability to proscribe a group is sometimes symbolic in nature and I believe that to be as important as anything else," he told the hearing.
Under Australia's national security laws, before an organisation is listed, the home affairs minister must be satisfied on reasonable grounds that it "is directly or indirectly engaged in preparing, planning, assisting or fostering the doing of a terrorist act, or advocates the doing of a terrorist act".
Mr Burgess said he agreed listing extremist organisations sent a "strong message" about "abhorrent behaviours and beliefs", but added it can't be relied on alone to stamp out extremist threats.
"Listing an entity will not stop anyone from committing a violent attack," he told the hearing.
"Conversely the absence of a listing does not prevent ASIO from investigating the threat."
Senator Keneally had earlier questioned Mr Burgess about whether there were further far-right groups overseas that posed a threat to Australians by inspiring extremist views.
"There are a whole range of other groups offshore," Mr Burgess told the hearing.
"Because of the connected nature of our world it is easy to read and share information and connect with people. You can be inspired by many different types."
Mr Burgess said it would be a matter for the federal government to consider whether laws needed to be changed around the proscription of terrorist groups.
However, he noted any such review should consider the "broader societal benefit" from making it very clear that adopting such racist and nationalist "beliefs is not appropriate in this country".
In New Zealand, unlike in Australia, individuals can be proscribed as terrorist entities, as well as groups.
Senator Keneally asked Department of Home Affairs officials if they thought the listing process needed reform to better respond to the risks posed by lone actors and splintered groups.
"At the moment the level is high because the consequences are high," Mr Teal replied.
"Therefore the balance of the legal test - that means you need to espouse terrorism - equals the consequential impact of crossing the line in that regard.
"[The question is] whether or not that balance needs to be adjusted."
Senator Keneally said the government should consider how it could send a "clear message" that the values these groups espoused undermined the values of Australian society.
Calls for stronger laws to stop spread of extremist material and symbols
The inquiry is also considering further steps the Commonwealth could take to disrupt and deter hate speech and establish thresholds to regulate the use of symbols and insignia associated with terrorism and extremism.
Officials from the Australian Federal Police told the inquiry the possession and sharing of propaganda and extremist symbols and insignia should be criminalised to deter mobilising people towards violence.
"There is no place for some of this material in the Australian community," said AFP deputy commissioner Investigations Ian McCartney.
"Our position is there is not sufficient legislation in place to address that."
The AFP also warned that younger Australians were becoming involved in Islamic extremist and extreme right-wing circles.
"We've got younger people engaging online in bedrooms," said assistant commissioner for counter-terrorism Scott Lee.
Mr Teal said the issues around taking legislative action against the possession of extremist material were getting a "significant amount" of attention in the government.
Mr Burgess had earlier added his voice to the role played by extremist symbols and material in motivating violent extremism across Australia.
"You're right to call out that these groups do use hate speech and their symbolism to recruit people to profile raise, so it is very much a tool of their trade," he said.
"I would point out there is a link between hate speech and hate crimes, including potential acts of terrorism."
Another term of reference for the inquiry is whether changes are needed to reform Australia's Counter-Terrorism Strategy in relation to preventing radicalisation.
Mr Teal said the strategy was being refined to reflect changes in the strategic environment.
The inquiry also heard that there have been two terrorist attacks, which led to two deaths, over the past year in Australia.
