Hydrasight analyst Michael Warrilow said if the arrangement involves anything more than exchanging information, he has serious concerns. Warrilow said the way it looks at the moment is just a feel-good approach with very little actual merit.

"The Attorney General has already invested in AusCert for Australia and the region as well as the critical infrastructure group whereas the government overall has invested in the Defense Signals Directorate (DSD)," Warrilow said.

"In my opinion these agencies represent a far better means of protecting the government and Australian society."