Why is Australia's new proposed AUKUS legislation under fire?

The Australian government has introduced new legislation in parliament that will tighten restrictions on how military technology is shared with foreigners, triggering backlash from defence experts.

The Defence Ministry announced the new legislation, dubbed Defence Trade Controls Amendment Bill 2023, in a statement on Thursday.

The ministry boosted it will unlock billions of dollars in investment and cut red tape for Australia’s defence industry and AUKUS trilateral security partnership.

"This will benefit defence industry in Australia, unlocking $5 billion – more than half of our annual exports – to our AUKUS partners," Defense Minister Richard Marles said.

Ahead of the second AUKUS defence minister meeting, Marles also said the new legislation will provide the Australian industry with greater opportunities for collaboration and trade with AUKUS partners without burdensome red tape.

However, the proposed law was met with criticism for exempting the US and UK, both of which are members of AUKUS:

1. Under United States control

Bill Greenwalt, who was responsible for legislative reform efforts in the Pentagon, tells ABC News this law means "Australia threw away its negotiating cards".

"Whenever (Australia) cooperates with the US it will surrender any sovereign capability it develops to United States control and bureaucracy," he says.

"In exchange, Australia got nothing except the hope that the US will remove process barriers that will allow the US to essentially steal and control Australian technology faster."

Greenwalt argues that any future Australian-developed military technology that is not shared with the US will face "the same type of mind-numbing bureaucratic controls" that persist in the US economy.

2. Raising the fence

On September 15, 2021, the US, UK and Australia announced the formation of AUKUS, a trilateral security treaty for the Indo-Pacific region. It was primarily intended for China, which is becoming more assertive in the region.

And while many praised the growing cooperation between the AUKUS countries, critics also raised concerns this new proposed law could stifle cooperation with non-AUKUS partners such as Japan, South Korea, France and Germany.

The President of the Australian Academy of Science’s President, Chennupati Jagadish tells Breaking Defense the bill means "I can collaborate freely with the US and the UK — which certainly has its benefits."

But, it also means people "would require an approved permit prior to collaborating with other foreign nationals."

"It expands Australia’s backyard to include the US and the UK, but it raises the fence,”Jagadish says.

3. Harsh criminal penalties

Without a permit, foreign nations face grim punishments such as jail time.

The Australian Academy of Science’s Chief Executive, Anna-Maria Arabia, also raised the concern over criminal penalties to Breaking Defense

“Resources to establish secure research facilities, to educate and train the research workforce to make it more security-aware especially as non-compliance — accidental or otherwise — will be a criminal offence,” Arabia said. Australia's government signalled it will refer the legislation to a relevant committee for consideration for further briefings and hearings.

If implemented, the bill will allegedly include a 12-month transition phase for Australian companies and institutions.