Controversial encryption-busting powers rushed through parliament late last year will be extended to federal and state corruption watchdogs.

Legislation was debated in the Senate yesterday which paves the way for anti-corruption bodies to get the same powers as other agencies to compel technical assistance to access electronic communications.

The powers will see the powers gifted to eight additional agencies, including state corruption watchdogs. Currently, the Australian Federal Police, Australian Crime Commission and state and territory police forces are the only agencies endowed with the new powers.

The change will broaden the definition of an “interception” agency under the Act so that it includes the Australian Commission for Law Enforcement Integrity and state crime and corruption commissions in NSW, Victoria, Queensland, SA and WA.

The amendments, which are supported by the Opposition, will also ensure an independent review of the bill occurs within 18 months of it passing Parliament.

An amendment changing the definition of “systemic weakness” was also approved by the Senate, replacing it with a more detailed and specific definition that should be welcomed by the tech community.

Labor backed the Morrison government’s encryption bill in December on the condition the government would agree to fully implement a parliamentary committee’s recommended changes.

But shadow attorney-general Mark Dreyfus has accused the government of breaking the agreement to improve the laws, which allow authorities to intercept Facebook, WhatsApp and other encrypted messages.

“It is not tenable to argue, as the government continues to argue, that its amendments largely implemented the committee’s 17 recommendations,” he told Parliament on Tuesday. “No reasonable person accepts that.”

The Opposition will pursue a series of other amendments when debate on the bill resumes in April.

AUSSIE TECH FIRMS ‘SEVERELY DAMAGED’

The Australian tech industry has spoken out against the bill, claiming it is damaging the perception of local software and communications companies, causing them to lose global customers.

Former Microsoft VP and Australian venture capitalist Daniel Petre says overseas companies looking to license Australian software would likely buy from a non Australian provider if they feared being caught up in the overly broad legislation.

“That’s happening today, Australian companies are already losing revenue, losing global customers, because of this legislation,” he told news.com.au this week.

He appeared alongside major Australian tech firms including Atlassian, Canva, Freelancer.com, Safety Culture and WiseTech Global in an industry submission lodged this week with a parliamentary inquiry scrutinising the bill.

The submission is led by StartupAUS, the country’s peak national advocacy group for start-ups, and calls for a number of urgent changes to relieve the government of “globally unprecedented power to involve itself in the operations of technology companies”.

Their concern was echoed by Aussie IT company Senetas that makes encrypted technologies, in a submission the company filed this week.

“The risk previously stated by many industry providers that the legislation would damage Australian developers’ and manufacturers’ reputations in international markets has now been realised,” it said.

“Trust in Australian companies operating in this market has been severely damaged.”