Home Affairs Minister Jason Clare has announced a "root and branch" overhaul of Customs after eight people were charged in connection to an alleged drug ring working out of Sydney airport.

A joint investigation by ABC's 7.30 and Fairfax has revealed that a cell of suspected corrupt Customs officers has allegedly helped smuggle drugs through Australia's biggest airport.

This morning Mr Clare announced that eight people, including two Customs employees and a quarantine officer, had been arrested and charged over the importation of drugs following a secret two-year investigation into corruption.

"There will always be the risk that organised criminals will target law enforcement officers. There's always the risk that our law enforcement officers could end up working for the crooks," Mr Clare told reporters in Sydney.

"And where that happens, you've got to hunt them down and weed them out. And that's what we're doing.

"If you're a corrupt officer, you can expect to get caught. I'm serious about this. There is no place for corruption, whether it's in Customs or the Federal Police or anywhere else.

"If you're corrupt we will hunt you down and lock you up. That is what this operation is all about."

Federal Police Commissioner Tony Negus said a 28-year-old Customs officer was arrested on Monday this week and charged with several offences including receiving bribes, drug importation and the possession of prohibited weapons.

Sorry, this video has expired Tony Negus gives details on the Sydney airport arrests

A 35-year-old Australian Quarantine and Inspection Service (AQIS) officer was arrested yesterday and charged with a range of corruption offences.

This week, two alleged drug couriers - one in Sydney, the other in Adelaide - were also arrested and charged.

"What has been alleged before the court so far is that the Customs officers involved in this would meet drug couriers off a plane, they would then walk them through the primary line of Customs, and then out into the waiting halls," Mr Negus said.

"It'll be alleged that they certainly played a role in organising the couriers themselves to go overseas and to actually facilitate their collection of the narcotics overseas, and then again, played a key role in bringing them back through the airports without any detection or any scrutiny from the normal process."

Several months ago, a 25-year-old Customs officer was arrested, along with two men and one woman. They were charged with corruption and drug-related offences.

"The investigation began... after Customs notified ACLEI (Australian Commission for Law Enforcement Integrity) of suspected corrupt activity almost two years ago," Mr Negus said.

"So far, this investigation has resulted in eight people being arrested.

"As I've stated, the investigation is still ongoing, and further arrests are anticipated."

As a result of the investigation, Mr Clare has announced further changes to Customs, including a "root and branch" overhaul of how the service operates.

He has appointed a three-member reform panel to oversee the changes, including James Wood who led the Royal Commission into New South Wales Police.

Former NSW Police Commissioner Ken Maroney and former Australia Post chairman David Mortimer have also been appointed.

The Government has already announced a number of changes to Customs this year, including covert integrity testing, drug and alcohol testing, new requirements to report misconduct, and expanding the powers of ACLEI.

Mr Clare said he planned to announce "major structural and cultural reforms" next year.

Acting Customs CEO Michael Pezzullo said he was disappointed by the latest arrests, but not surprised.

"I'm not so naive as to think that criminal elements will not attempt to penetrate this service, its systems and its staff," he told reporters.

"Next year, the real game will be to reform the culture of the place, and also to address the management and leadership deficiencies that in part led to this circumstance."

The Opposition has blamed severe cuts to the Customs budget, arguing that fewer resources have allowed a culture to flourish where organised criminals have been able to infiltrate the agency.

Mr Clare concedes about 750 staff have been cut from the service since Labor came to office in 2007, but says some of those positions have been made redundant through automation.

Opposition Customs spokesman Michael Keenan says it has given criminal networks a foothold.

"The truth is that since the Labor Party came to office they have savaged Customs' budget and they have reduced the number of personnel in Customs and that has allowed organised crime to infiltrate the agency," he said.

"Criminals have clearly noted the opportunities to penetrate the overstretched and under resourced Customs agency and are exploiting it with all their might."

But Mr Clare says the number of staff in the integrity branch of Customs has been increased from five to 42 since 2007, and that will be increased to 48 staff.

The 7:30/Fairfax investigation uncovered internal memos and reports from as early as 2007 that called for better anti-corruption measures. The 2007 report written by a top-ranking Customs official warned that the agency was terribly exposed without major reforms.

Despite those warnings, it has taken several years to act on some of the recommendations.

Mr Clare has moved to defend the Government's oversight of the agency, pointing to the success of the ongoing investigation and the increased numbers of integrity officers.

"As Minister for Home Affairs, I've led the biggest reforms to integrity inside Customs in generations - integrity testing, drug and alcohol testing, summary dismissal powers, mandatory reporting, and as I've said today, (there's) more to come," he said.