The Abbott government will commit a further $450 million to the fight against homegrown terrorism in Tuesday's budget as it warns of a dangerous new trend towards teenagers, some as young as 14, taking up the cause of violent extremism.
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The new spending pushes the government's outlays on national security and de-radicalisation programs to well over $1 billion, despite severe budgetary pressure.
It comes as other agencies are bracing for less money as the government struggles to meet promises of increased childcare and small business funding, while containing a budget deficit expected to be in the $46 billion range this year and almost as high next year.
But Prime Minister Tony Abbott said the threat of terrorism was not to be taken lightly.
"To help combat terrorism at home and deter Australians from committing terrorist acts abroad, we need to ensure our security agencies are resourced properly and have the powers to respond to evolving threats and technological change," Mr Abbott said.
"To deter terrorism we need to challenge the recruitment methods used by extremist organisations, particularly online."
A worsening threat assessment by ASIO and the Australian Federal Police is behind the increased funding as well as new and onerous demands being placed on agencies following beefed-up counter-terrorism laws such as those dealing with metadata.
The announcement of more money comes amid a heightened period of alert for counter-terrorism agencies, which have disrupted two alleged plots in just the past month, both involving teenagers.
Since ASIO raised the terrorism threat level to high last September, 23 people have been charged as a result of eight counter-terrorism operations.
Attorney-General George Brandis told Parliament on Monday there was a "concerning trend" towards young people planning terrorist attacks.
"People as young as 14, without criminal records or strong links to known terror networks, are being groomed online by terrorist organisations and presenting a new challenge for security and law enforcement agencies."
A 17-year-old Melbourne man was charged on Friday with terrorism offences after police raided his home and allegedly found three pipe bombs.
Last month, two Melbourne men, both aged 18, were charged in relation to an alleged plot to carry out a terrorist attack against police during Anzac Day services. That plot was allegedly encouraged by a boy in Britain who was aged just 14 and who now faces charges in that country.
The new money includes $296 million to "strengthen the capabilities of our intelligence agencies, including updating information technology systems".
That additional money for intelligence agencies to upgrade their IT systems likely reflects the shift towards electronic forms of communication between would-be jihadists and the growing problem of online radicalisation, particularly through social media.
As previously reported by Fairfax Media, the Abbott government's scheme to force phone and internet firms to keep customers' metadata for at least two years was expected to cost the industry up to $300 million with the government expected to contribute about half.
The revelation that the government will kick in $131 million indicates the industry will have to pay about the same amount to upgrade its systems to securely store the data, with that cost likely to be passed on to consumers in the form of higher bills.
The $22 million to fight online extremism, which has previously been announced by Senator Brandis, will be used to counter the estimated 100,000 pieces of online propaganda put out each day by groups like the so-called Islamic State.
The Attorney-General's department is set to establish a team of intelligence and technology experts who will monitor and analyse online propaganda and also its impact in Australia.
The government will step up its own information campaign through social media such as Twitter and Facebook. It is also planning to provide communication training and education to influential Muslims, with help from firms such as Google, Twitter and Facebook, to counter jihadist messages.
National security is one of few areas able to claim increased funding in a tight budget situation in which other departments are being told to do more with less, and where some job losses in the public service are expected.
The budget is a crucial test for both the Prime Minister and his Treasurer Joe Hockey, with Liberal MPs eager to see a mistake-free delivery and sales job in order to stave off a return to the instability which saw an up-welling of discontent in February.
