Australia’s strategic circumstances continue to evolve, marked by increasing uncertainty, competition and complexity. Challenges to the rules-based international order have continued to change the operating environment in which Australian foreign policy must operate. Protecting Australians overseas, promoting economic prosperity, and advocating for Australia’s interests on the international stage remain priorities for government. In pursuit of these objectives, PM&C’s role is to support the Prime Minister and the Cabinet by driving and coordinating whole-of-government and whole-of-nation efforts to protect and advance Australia’s national and global interests.

The contest for influence has only increased the value of regional partnerships and cooperation. PM&C continues to support these partnerships, bilaterally and multilaterally, through key forums such as the East Asia Summit, the Pacific Islands Forum, the Quad, the Association of Southeast Asian Nations (ASEAN), Asia-Pacific Economic Cooperation (APEC) and the G20.

Trade tensions between major global powers, and ongoing international conflicts, continue to have far-reaching impacts on global stability and international relations. These developments – amid contest for influence in the Indo-Pacific – shape Australia’s foreign policy priorities, including the need to safeguard regional stability and protect critical supply chains.

Economically, global growth is slowing in the face of heightened policy uncertainty. Inflationary pressures persist along with ongoing energy security challenges. These factors contribute to global instability and have a direct impact on our national economy. Australia’s ability to secure its economic interests and maintain a robust and resilient economy remains crucial, particularly as government supports diversification into new markets, including through Australia’s Southeast Asia Economic Strategy to 2040.

PM&C is supporting the government’s National Defence Strategy, a whole-of-nation approach to security that brings together all elements of national power. This approach demands more active and integrated Australian statecraft, working to maintain a stable regional balance, align domestic and international policy settings, and ensure we are equipped to respond to strategic challenges.

Key to this is strengthening Australia’s international engagement and investing in advanced defence capabilities. Through the acquisition of conventionally-armed, nuclear-powered submarines and collaboration on emerging technologies under AUKUS (with the United Kingdom and United States), Australia is reinforcing its ability to deter coercion and uphold regional stability. Alongside like-minded partners, we are working to ensure the Indo-Pacific remains a region in which all states can decide their futures free from interference.

National security and economic prosperity are deeply interconnected and mutually reinforcing. The department continues to work with our counterparts to develop policies that bolster our national security. This includes supporting continued efforts to secure Australia’s borders, protect our democratic institutions, strengthen the resilience of our critical infrastructure, defend against foreign interference and cyber threats, and build national resilience and preparedness for major disruption. Strengthening social cohesion remains a priority, underpinning our democracy and enhancing our ability to counter violent extremism and terrorism.

Australia’s national intelligence agencies remain at the heart of these efforts. The National Intelligence Community (NIC) plays a critical role in identifying and responding to emerging and enduring security threats. As the geostrategic environment becomes more complex, the NIC must remain adaptive. PM&C is continuing to work closely with the NIC to implement the government agreed recommendations from the 2024 Independent Intelligence Review to ensure Australia’s intelligence enterprise is best positioned to serve the Australian national interest and maintain its high performance.

PM&C will also lead the implementation of government agreed recommendations from the 2024 Independent Review of Commonwealth Funding for Strategic Policy Work. This will include through the development of annual research priorities to guide government engagement with the non-government strategic policy sector, as well as implementing a principles-based framework to support consistent decision-making on commissioning strategic policy work.