Federal AI Security Frameworks

April 17, 2026 · View on GitHub

Detailed documentation of Commonwealth AI security requirements

This document provides in-depth coverage of federal AI security frameworks, including implementation guidance and practical considerations.


Table of Contents

  1. ACSC Technical Guidance
  2. Information Security Manual (ISM)
  3. Protective Security Policy Framework (PSPF)
  4. Critical Infrastructure (SOCI Act)
  5. DTA Policy and Standards
  6. Sector Regulators
  7. Implementation Considerations

ACSC Technical Guidance

The Australian Cyber Security Centre (ACSC), part of the Australian Signals Directorate (ASD), provides the primary technical guidance for AI security in Australia. Much of this guidance is developed collaboratively with Five Eyes partners.

Core Documents

Engaging with Artificial Intelligence (2024, updated 2025)

Purpose: Introductory guidance for organisations beginning to use AI systems.

Key Security Topics:

  • Data Poisoning: Manipulation of training data to cause model misbehaviour
  • Prompt Injection: Adversarial inputs designed to override system instructions
  • Supply Chain Risks: Third-party models, libraries, and data sources
  • Model Stealing: Extraction of proprietary model weights or behaviour
  • Information Disclosure: Unintended exposure of training data or sensitive information

Partners: CISA, FBI, NSA, NCSC-UK, CCCS, NCSC-NZ, Japan NISC

Implementation Notes:

  • Start here for organisations new to AI security
  • Cross-reference with OWASP Top 10 for LLM Applications
  • Consider as baseline awareness for all staff using AI tools

Deploying AI Systems Securely (April 2024)

Purpose: Technical guidance for secure deployment of AI systems in enterprise environments.

Key Security Controls:

CategoryControls
Access ControlRole-based access, least privilege, MFA for AI systems
Network SegmentationIsolate AI infrastructure, control data flows
Logging and MonitoringComprehensive logging of AI inputs/outputs, anomaly detection
AI Red-TeamingAdversarial testing before and after deployment
GPU SecuritySecure configuration of AI accelerators, memory protection
Model ProtectionEncryption at rest and in transit, access controls on model files

Partners: NSA AISC (lead), ASD's ACSC, CISA, FBI, NCSC-UK, CCCS, NCSC-NZ

Implementation Notes:

  • Essential reading for security teams deploying AI
  • Addresses infrastructure-level security often missed in AI ethics frameworks
  • GPU security section particularly relevant for on-premise deployments

Guidelines for Secure AI System Development (November 2023)

Purpose: Security guidance for organisations developing AI systems.

Lifecycle Phases Covered:

  • DESIGN
  • DEVELOP
  • DEPLOY
  • OPERATE

Key Requirements:

  • Software Bill of Materials (SBOM) for AI components
  • Threat modelling including AI-specific attack vectors
  • Secure handling of training data
  • Model versioning and integrity verification

Partners: NCSC-UK/CISA (lead), 23 international agencies including ASD


AI Data Security (May 2025)

Purpose: Protecting data throughout the AI lifecycle.

Key Topics:

  • Data Supply Chain: Provenance tracking for training data
  • Data Poisoning Mitigations: Validation, anomaly detection, trusted sources
  • Encryption: Data at rest, in transit, and during processing
  • Content Credentials: C2PA standard for media provenance
  • Data Lineage: Tracking data transformations and usage

Partners: NSA AISC, ASD's ACSC, Five Eyes partners


AI/ML Supply Chain Risks and Mitigations (October 2025)

Purpose: Managing risks from third-party AI components.

This is Australia's first standalone AI supply chain guidance.

Risk Categories:

RiskDescriptionMitigations
Pre-trained ModelsBackdoors, biases, malicious behaviourProvenance verification, testing, trusted sources
Third-party LibrariesVulnerabilities, supply chain attacksDependency scanning, version pinning, SBOM
Training DataPoisoning, bias, IP issuesData validation, trusted sources, documentation
Cloud AI ServicesProvider security, data handlingDue diligence, contracts, monitoring

AI Bill of Materials (AI-BOM) Components:

  • Model architecture and version
  • Training data sources and lineage
  • Dependencies and versions
  • Known limitations and failure modes
  • Security testing results

Frontier Models and Their Impact on Cyber Security (April 2026)

Purpose: Guidance on preparing for the cyber security implications of frontier AI models with enhanced vulnerability discovery capabilities.

Context: Published in response to rapid advances in frontier AI model capabilities for vulnerability discovery. The ACSC guidance notes that frontier models have discovered long-standing vulnerabilities that survived decades of human review, and references industry blog posts including from Anthropic (7 April 2026) and warnings from OpenAI (December 2025) about frontier model cyber security risks.

Author's note: Anthropic's Claude Mythos model and Project Glasswing are illustrative examples of the capabilities the ACSC guidance addresses. The ACSC publication references these developments without naming specific models or products.

Key Mitigation Strategies:

StrategyDescriptionASD References
Reduce attack surfacesAssess external connectivity, apply network segmentation, limit to reputable suppliersISM System Hardening, Network Segmentation guidance
Patch every dayAdopt increased patching tempo; apply all patches regardless of severity ratingISM System Management, Essential Eight
Use AI to find vulnerabilitiesLeverage frontier models for Secure by Design; strengthen code before deploymentSafe Software Deployment guidance
Implement layered securityDefence-in-depth aligned with modern defensible architectures; zero trust principlesSecure by Design guidance

Key Insight: AI is not creating new vulnerabilities — it is identifying those that already exist. Organisations should harness AI's vulnerability discovery capabilities defensively while preparing for adversaries using the same capabilities offensively.

Partners: References NCSC-UK analysis on defensive use of frontier models.


ACSC Guidance Summary Table

DocumentPrimary AudienceThreat CoverageImplementation Effort
Engaging with AIAll staffAwarenessLow
Deploying SecurelySecurity/OpsInfrastructureHigh
Secure DevelopmentDevelopersSDLCHigh
AI Data SecurityData teamsData lifecycleMedium
Supply ChainProcurement/SecurityThird-partyMedium
Frontier ModelsAll organisationsFrontier AI risksMedium

Information Security Manual (ISM)

The ISM is the Australian Government's cybersecurity framework. It became mandatory for non-corporate Commonwealth entities and is referenced by most state frameworks.

AI-Specific Controls

Three AI-specific controls have been added since June 2024:

ISM-1923: OWASP Top 10 for LLM

Control Text:

Risks identified in the OWASP Top 10 for Large Language Model Applications are mitigated.

OWASP Top 10 for LLM Applications (2025 v2.0):

  1. Prompt Injection
  2. Sensitive Information Disclosure
  3. Supply Chain Vulnerabilities
  4. Data and Model Poisoning
  5. Improper Output Handling
  6. Excessive Agency
  7. System Prompt Leakage
  8. Vector and Embedding Weaknesses
  9. Misinformation
  10. Unbounded Consumption

Implementation:

  • Map each OWASP risk to your LLM deployment
  • Implement mitigations documented in OWASP guidance
  • Document residual risks and acceptance decisions
  • Regular review as OWASP updates the list

ISM-1924: Adversarial Input Detection

Control Text:

Adversarial inputs, including prompt injection attempts, are detected and mitigated.

Implementation Approaches:

ApproachDescriptionEffectiveness
Input ValidationPattern matching, blocklistsBasic
Semantic AnalysisDetect instruction-like patternsMedium
Anomaly DetectionML-based input classificationHigh
Layered PromptsSystem prompts resistant to injectionMedium
Output FilteringDetect when injection succeededComplementary

Note: Effectiveness ratings are the author's assessment based on practitioner experience, not ASD's official position. No single approach is comprehensive; defence in depth is required.

Critical: Indirect Prompt Injection

ISM-1924's scope includes adversarial inputs that may not come directly from the user. In retrieval-augmented generation (RAG) systems and agentic AI deployments, adversarial content can be injected via:

  • Poisoned documents ingested by the retrieval pipeline
  • Malicious content in emails, databases, or external data sources
  • Compromised tool outputs in multi-step agent workflows

Organisations should implement defences against indirect injection including retrieval sandboxing, output monitoring for tool-calling systems, and canary document detection.

Practical Considerations:

  • No single approach is comprehensive
  • Defence in depth required
  • Monitor for emerging injection techniques
  • Balance security with usability

ISM-2072: AI Model Storage Formats

Control Text:

AI models are stored in formats that do not allow arbitrary code execution.

Background: Pickle files (common in Python ML) can execute arbitrary code on load, enabling supply chain attacks.

Safe Formats:

  • safetensors - Recommended; no code execution possible
  • ONNX - Open format; safe when custom operators are disabled or restricted to a known allowlist
  • TensorFlow SavedModel - When restricted to frozen graphs; disable py_function and custom layer code execution
  • GGUF/GGML - Quantized format; inherently safe

Unsafe Formats:

  • pickle (.pkl, .pt, .pth) - Arbitrary code execution
  • joblib - Python serialisation; code execution possible
  • Custom formats - Assess case by case
  • PyTorch .bin - Uses pickle serialisation internally despite different extension
  • Keras HDF5 (.h5) - Lambda layers can contain arbitrary Python code

Implementation:

  • Convert existing models to safetensors where possible
  • Scan incoming models for pickle content
  • Establish approved formats list for procurement
  • Training for ML engineers on secure formats

While not AI-specific, these ISM sections apply to AI systems:

GuidelineAI Relevance
Guidelines for Software DevelopmentAI/ML code, MLOps pipelines
Guidelines for System HardeningAI infrastructure, GPU servers
Guidelines for Database SystemsTraining data, vector databases
Guidelines for CryptographyModel encryption, secure inference
Guidelines for System ManagementAI system administration
Guidelines for Network SecurityAI network segmentation
Guidelines for Email SecurityAI-assisted email handling

Protective Security Policy Framework (PSPF)

The PSPF establishes protective security requirements for Commonwealth entities.

PSPF 2025 AI Additions

The July 2025 PSPF release added new content specifically addressing:

  • Artificial intelligence
  • Quantum computing
  • Connected peripheral technologies

PSPF Policy Advisory 001-2025: GenAI Use

Scope: Rules for using OFFICIAL information with generative AI services.

Key Requirements:

RequirementDetail
Approved Providers OnlyMust use Hosting Certification Framework certified providers
Pre-approved ProvidersOpenAI and Anthropic approved without additional FOCI assessment
Other ProvidersRequire explicit FOCI (Foreign Ownership, Control, Influence) risk evaluation
Classification LimitsOFFICIAL only; no PROTECTED or above
LoggingMaintain records of GenAI use with official information

PSPF Direction 001-2025: DeepSeek Ban

Scope: Prohibition on DeepSeek products across all Commonwealth entities.

Requirements:

  • Remove all existing DeepSeek applications and services
  • Block access to DeepSeek web services
  • Applies to all devices accessing government systems
  • Includes personal devices used for work

Rationale: National security concerns regarding data handling and foreign influence.


AI-Relevant Requirements:

  • Authorisation process for AI technology systems
  • Risk assessment before deployment
  • Ongoing monitoring requirements
  • Incident reporting obligations

PSPF and AI Decision Flow

See the Knowledge Graph for the PSPF AI decision flow Mermaid diagram, or the diagrams/ folder for SVG visualisations.


Critical Infrastructure (SOCI Act)

The Security of Critical Infrastructure Act 2018 (as amended) applies to 22 critical infrastructure asset classes.

AI Under SOCI

AI systems are captured under SOCI when:

  • Embedded in critical infrastructure assets
  • Used to operate or manage critical infrastructure
  • Could impact critical infrastructure if compromised

Critical Infrastructure Risk Management Program (CIRMP)

CIRMPs must address AI under the cyber and information security hazard vector.

CISC AI Risk Categories:

CategoryDescriptionExamples
Attacks Using AIAI-enhanced threats against CIAI-powered intrusion, automated exploitation
Attacks On AITargeting AI systems in CIModel poisoning, adversarial attacks
AI Reliability FailuresAI malfunction affecting CIHallucinations in critical decisions, automation failures

Incident Reporting

AI incidents affecting critical infrastructure require reporting:

  • Critical impact: 12 hours
  • Significant impact: 72 hours

Reportable AI Incidents:

  • Successful adversarial attacks on CI AI systems
  • AI system failures causing CI disruption
  • Data breaches involving AI training data for CI
  • Discovery of backdoors in CI AI models

DTA Policy and Standards

The Digital Transformation Agency oversees AI governance for the Australian Public Service.

Policy for Responsible Use of AI in Government v2.0

Effective: December 2025

Key Requirements:

RequirementDeadlineDetail
Chief AI OfficersBy end of 2026Every agency to designate
Transparency Statements6 months from releasePublic disclosure of AI use
High-Risk OversightImmediateSubmit to oversight committee
TrainingOngoingAll staff using AI
Usage TrackingImmediateMonitor and report AI use

Exclusions:

  • Defence portfolio
  • National intelligence community

AI Technical Standard

Effective: July 2025

Covers:

  • Technical implementation requirements
  • Integration standards
  • Security baseline
  • Interoperability requirements

GovAI Platform

Purpose: Sovereign AI hosting service for government agencies.

Security Features:

  • Australian-based hosting
  • Certified under Hosting Certification Framework
  • Centralised logging and monitoring
  • Standardised security controls

Australia's AI Ethics Principles

Published by DISR | 8 voluntary principles referenced by all jurisdictions:

  1. Human, societal and environmental wellbeing
  2. Human-centred values
  3. Fairness
  4. Privacy protection and security
  5. Reliability and safety
  6. Transparency and explainability
  7. Contestability
  8. Accountability

These principles are referenced by NSW, Victoria, Queensland, and the National Framework for AI Assurance.


Sector Regulators

Financial Services

APRA CPS 234 (Information Security)

  • All information security requirements apply to AI systems
  • Board oversight of AI security
  • Third-party AI provider requirements
  • 72-hour incident notification

APRA CPS 230 (Operational Risk Management)

  • Effective July 2025
  • New technology (including AI) risk assessment required
  • Impact on operational risk profile
  • Business continuity for AI dependencies

ASIC Report 798

  • AI governance expectations
  • Third-party risk management
  • Human oversight requirements
  • Existing licensee obligations apply to AI

Online Safety

eSafety Industry Standards (June 2024, effective December 2024)

  • First mandatory AI-specific safety requirements
  • Applies to: Generative AI services, AI companion chatbots, model distribution platforms
  • Safety by design obligations
  • Enforceable under Online Safety Act 2021

Privacy

OAIC Guidance

  • APP 11 (Security) applies to AI systems processing personal information
  • Automated decision disclosure (APP 1.7-1.9) - mandatory from December 2026 (per Privacy and Other Legislation Amendment Act 2024)
  • Privacy Impact Assessments recommended for AI projects

Privacy Act 1988 (as amended December 2024)

The Privacy and Other Legislation Amendment Act 2024 received Royal Assent on 10 December 2024, progressing 23 proposals from the Privacy Act Review Report.

Key AI-relevant provisions:

ProvisionEffective DateAI Relevance
Statutory tort for serious invasions of privacyJune 2025AI systems processing personal information
Automated decision-making transparency (APP 1.7-1.9)December 2026Disclosure requirements for AI decisions
Children's Online Privacy CodeDecember 2026AI services targeting children
Enhanced OAIC enforcement powersDecember 2024Civil penalties for AI-related privacy breaches

Note: Second tranche of reforms (additional Privacy Act Review proposals) expected during 2026.


Implementation Considerations

Compliance Mapping

For organisations subject to multiple frameworks:

If You Are...Primary FrameworksAdditional Requirements
Commonwealth EntityISM, PSPF, DTA PolicySector-specific if applicable
CI Asset OwnerSOCI Act, CIRMP, ISMACSC guidance
Financial ServicesAPRA CPS 234/230, ASICISM (recommended)
State GovernmentState framework, ISM (referenced)Sector-specific
Private SectorACSC guidance (voluntary), sector-specificPrivacy Act if handling PI

Implementation Priority

Recommended order for federal compliance:

  1. ISM AI Controls (ISM-1923, 1924, 2072) - Mandatory baseline
  2. PSPF AI Provisions - If handling government information
  3. SOCI CIRMP - If critical infrastructure
  4. Sector-specific - APRA, eSafety, etc.
  5. ACSC Guidance - Technical implementation

Common Gaps

Based on audit and assessment findings, common compliance gaps include:

GapAffected ControlRemediation
No adversarial testingISM-1924Implement input validation + monitoring
Pickle format modelsISM-2072Convert to safetensors
Missing AI-BOMSupply chain guidanceDocument all AI components
No FOCI assessmentPSPF 001-2025Assess non-approved providers
Insufficient loggingMultipleComprehensive AI audit trail

Resources


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