Issued by authority of the Minister for Home Affairs
Security of Critical Infrastructure Act 2018
Security of Critical Infrastructure (Application) Rules (LIN 22/026) 2022
1 The instrument is made under section 61 of the Security of Critical Infrastructure Act 2018 (the Act). The instrument commences on the day after registration on the Federal Register of Legislation, and is a legislative instrument for the Legislation Act 2003 (the Legislation Act).
Purpose
2 Part 2 of the Act provides that the Secretary of the Department must keep a private Register of Critical Infrastructure Assets containing information in relation to those assets. Under Part 2, the responsible entity for a critical infrastructure asset must give operational information, and a direct interest holder in relation to the asset must give interest and control information, to the Secretary to be included in the Register.
3 Section 18A of the Act provides that Part 2 of the Act applies to:
· an asset specified in the rules (paragraph (1)(a)); and
· an asset that has been privately declared to be a critical infrastructure asset under section 51 of the Act, where the declaration determines that Part 2 applies to the asset (paragraph (1)(b)); and
· an asset that was a critical infrastructure asset immediately before the commencement of section 18A of the Security Legislation Amendment (Critical Infrastructure) Act 2021 (the Amendment Act) (paragraph (1)(c)).
5 Section 30BB of the Act provides that Part 2B of the Act applies to:
· an asset specified in the rules (paragraph (1)(a)); and
· an asset that has been privately declared to be a critical infrastructure asset under section 51 of the Act, where the declaration determines that Part 2B applies to the asset (paragraph (1)(b)).
Details of the instrument
Consultation
Parliamentary scrutiny etc.
Attachment A
Details of the Security of Critical Infrastructure (Application) Rules (LIN 22/026) 2022
Section 1 Name
This section provides that the name of the instrument is the Security of Critical Infrastructure (Application) Rules (LIN 22/026) 2022 (the instrument).
Section 2 Commencement
This section provides that the instrument commences on the day after registration on the Federal Register of Legislation.
Section 3 Definitions
Section 3 sets out definitions of terms used in this instrument by reference to their definitions in the Aviation Transport Security Act 2004 (ATSA), Aviation Transport Security Regulations 2005 and the Customs Act 1901. The definitions of those terms will apply as amended from time to time by operation of paragraph 13(1)(b) of the Legislation Act 2003 (the Legislation Act).
Section 4 Application of Part 2 of the Act
Subsection 4(1) of the instrument provides that Part 2 of the Security of Critical Infrastructure Act 2018 (the Act) applies to the critical infrastructure assets specified in paragraphs (a) to (m) but excluding the assets mentioned in subsection (2).
Paragraphs 4(1)(1) and (m) of the instrument specify that Part 2 of the Act applies to critical electricity assets and critical gas assets that were not critical infrastructure assets prior to the commencement of section 18A of the Act. This is to ensure that Part 2 of the Act applies to assets that newly become a critical electricity asset or a critical gas asset as a result of the amendments made to the Act by the Security Legislation Amendment (Critical Infrastructure) Act 2021 (the Amendment Act) and the subsequent implementation of the Security of Critical Infrastructure (Definitions) Rules 2021 (the Definitions Rules).
It should be noted that paragraph 18A(1)(c) of the Act provides that Part 2 of the Act continues to apply to critical infrastructure assets that were critical infrastructure assets immediately before the commencement of section 18A. For this reason, Part 2 of the Act continues to apply to:
· critical electricity assets and critical gas assets that were already critical infrastructure assets immediately prior to the commencement of section 18A;
· critical water assets;
· critical port assets;
· an asset privately declared under section 51 before the commencement of section 18A of the Amendment Act.
As a result of being specified in subsection 4(1), the responsible entities for these assets have an ongoing obligation to give operational information, and direct interest holders an obligation to give interest and control information, to the Secretary and to notify the Secretary of notifiable events (see sections 23 and 24 of the Act in particular).
Subsection 4(2) lists four specific sugar mills that are owned or operated by specified entities as excluded from the obligation to comply with Part 2 of the Act. Sugar mills owned or operated by these entities may fall within the definition of ‘critical electricity asset’ under section 10 of the Act and the Definitions Rules. The electricity generators run by The Haughton Sugar Company Pty Ltd, Pioneer Sugar Mills Pty Ltd, Mackay Sugar Ltd and MSF Sugar Pty Ltd are non-scheduled, seasonal generators, and would be unlikely to impact the electricity network in any significant way if they were unavailable so it is appropriate to exclude from the definition.
Subsection 4(3) outlines a grace period for compliance with Part 2 of the Act. Under this provision, Part 2 of the Act does not apply to the critical infrastructure assets mentioned in subsection (1) in the period beginning at the time that the asset becomes a critical infrastructure asset and ending the later of 6 months after the commencement of this instrument and 6 months after the instrument becomes a critical infrastructure asset. For example, if an asset becomes a critical infrastructure asset on 1 April, the obligations in Part 2 will generally apply from the following 1 October.
At the time of commencement of this instrument, the time that an asset becomes a critical infrastructure asset may be determined by reference to the commencement of:
· Schedule 1 to the Amendment Act (which inserted the definitions of the terms specified in subsection (1)); or
· the Definitions Rules (which prescribe detail relating to the definition of terms specified in subsection (1)).
The 6 month ‘grace period’ set out in subsection 4(3) for obligations under Part 2 of the Act does not apply to assets that were already critical infrastructure assets prior to the commencement of section 18A of the Act.
Section 5 Application of Part 2B of the Act
Subsection 5(1) of the instrument provides that Part 2B of the Act applies to the critical infrastructure assets specified in paragraphs (a) to (t) but excluding the assets mentioned in subsections (3) and (4).
Paragraph (1)(p) specifies that Part 2B of the Act applies to a critical aviation asset mentioned in subsection (2). Subsection 5(2) lists a number of particular assets that are critical aviation assets. The use of the word ‘Australian’ in paragraph 5(2)(b) means that this provision is not intended to include international airlines, but is intended to include domestic (Australian) airlines that conduct international operations in addition to their domestic routes.
As a result of being specified in subsection 5(1), the responsible entities for these assets have an obligation to notify the relevant Commonwealth body about critical cyber security incidents within 12 hours (see section 30BC of the Act) or of other cyber security incidents within 72 hours (see section 30BD).
Subsection 5(3) lists four specific sugar mills that are owned or operated by specified entities as excluded from the obligation to comply with Part 2 of the Act. Sugar mills owned or operated by these entities may fall within the definition of ‘critical electricity asset’ under section 10 of the Act and the Definitions Rules. The electricity generators run by The Haughton Sugar Company Pty Ltd, Pioneer Sugar Mills Pty Ltd, Mackay Sugar Ltd and MSF Sugar Pty Ltd are non-scheduled, seasonal generators, and would be unlikely to impact the electricity network in any significant way if they were unavailable so are appropriate to exclude from the definition.
Subsection 5(4) will exclude certain assets from the requirement to comply with Part 2B of the Act after the passage of the Transport Security Amendment (Critical Infrastructure) Bill 2022 (the TSACI Bill). The TSACI Bill would make amendments to the ATSA and the Maritime Transport and Offshore Facilities Security Act 2003 (MTOFSA) to create a cyber incident reporting obligation in the legislation that is tailored and fit-for-purpose for the aviation and maritime transport sectors.
Parts 1 of Schedule 3 to the TSACI Bill would make consequential amendments to the Act to replace the definition of ‘critical aviation asset’. Part 2 of Schedule 3 of the TSACI Bill will make consequential amendments to the Act to repeal the definition of ‘critical port asset’ and to insert a new definition of ‘critical maritime asset’. Subsection 5(4) of the instrument will mean that those assets, who will be subject to the cyber incident reporting regimes under the ATSA and MTOFSA if the TSACI Bill passes the Parliament, will be automatically excluded from the obligation to also provide a mandatory cyber incident report under Part 2B of the Act.
Subsection 5(5) of the instrument provides that Part 2B of the Act does not apply to the critical infrastructure assets specified in subsection (1) in the period beginning when the asset becomes a critical infrastructure asset, and ending at the later of:
· 3 months after the commencement of this instrument; and
· 3 months after the asset became a critical infrastructure asset.
Attachment B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Security of Critical Infrastructure (Application) Rules 2022 (LIN 22/026)
This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Disallowable Legislative Instrument
· provide ownership and operational information to the Register under Part 2 of the Act; and
· provide reports about cyber incidents to the Australian Cyber Security Centre (ACSC) under Part 2B of the Act.
· the asset is specified in the Application Rules (paragraph (1)(a))
· the asset is the subject or a declaration under section 51, and the declaration determines that this Part applies to the asset (paragraph (1)(b)), or
· immediately before the commencement of section 18A of the Act, the asset was a critical infrastructure asset (within the meaning of the Act prior to these amendments commencing) (paragraph (1)(c)).
· the asset is specified in rules (Application Rules) made by the Minister under section 61 of the Act (paragraph (1)(a)), or
· the asset is subject to a declaration under section 51 of the Act (which enables the Minister to make a private declaration that an asset is a critical infrastructure asset) and the declaration under section 51 determines that Part 2B applies to the asset (paragraph (1)(b)).
· all critical infrastructure assets,
· a category of critical infrastructure assets such as critical broadcasting assets,
· a subset of assets within a category of critical infrastructure assets, such as liquid fuel pipelines that are critical liquid fuel assets, or
· a specific asset that is a critical infrastructure asset.
Human rights implications
· the right to an adequate standard of living, including the right to adequate food in Article 11 of the International Covenant on Economic, Social and Cultural Rights (ICESCR);
· the right to the enjoyment of the highest attainable standard of physical and mental health, including medical service and attention in the event of sickness in Article 12 of the ICESCR; and
· the right to privacy in Article 17 of the International Covenant on Civil and Political Rights (ICCPR).
The right to an adequate standard of living, including the right to adequate food
The right to the enjoyment of the highest attainable standard of physical and mental health
Right to privacy
· responsible entity (owners or operators) for an asset
· the responsible entity’s employees, or
· the responsible entity’s customers/consumers.
Responsible entities
· mandatory notification of cyber-security incidents (Part 2B of the Act); and
· the obligation of a reporting entity for a critical infrastructure asset to give information and notify of events for the Register of Critical Infrastructure Assets (Part 2, Division 2 of the Act).
Register of Critical Infrastructure Assets – obligations to give information and notify of events
Secretary’s powers to obtain information or documents
· the Secretary’s duty and function to keep a Register under section 19
· the Minister’s power to issue a direction under subsection 32(2),
· the Secretary’s power to issue a direction under subsection 35AK(2), and
· the Secretary’s power to undertake an assessment of a critical infrastructure asset to determine if there is a national security risk under section 57.
Conclusion
The Disallowable Legislative Instrument is compatible with human rights because it promotes human rights and, to the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate to the objective of reducing national security risks, including those presented by cyber threats, to critical infrastructure.