Microsoft and the Australian Government have signed a memorandum of understanding on digital resilience, covering cooperation on secure cloud, cybersecurity, artificial intelligence, and critical infrastructure protection.
The memorandum was signed in Canberra by Tony Burke, Minister for Home Affairs and Minister for Cyber Security, and Lisa Monaco, President of Microsoft Global Affairs. It sets out a framework for strategic cooperation as Australia responds to rising cyber risks and broader concerns about the security of digital infrastructure.
Under the arrangement, the two sides will work to protect critical digital assets and support the security of essential services. The agreement names the resilience of connectivity networks and data centre infrastructure, threat information sharing and incident response, the use of AI in government, and support for critical infrastructure providers.
It also covers policy and regulatory measures linked to national digital resilience. An operating framework for ongoing strategic dialogue is intended to help both sides monitor progress and review changes in the threat landscape over time.
For Canberra, the agreement brings one of the world's largest technology suppliers into a more formal structure for engagement on cybersecurity and digital systems. For Microsoft, it extends a relationship with the federal government that already includes cyber work and cloud infrastructure investment in Australia.
Burke described the agreement as part of a broader public-private response to cyber threats.
"We can't stop all cyber attacks. But agreements like this make sure we're more resilient. There's no better example of private/public partnership than cyber," Burke said.
He said the government and private sector shared responsibility for online security.
"We rely on each other to keep Australians safe online. Microsoft is a critical partner in cyber security and this agreement takes our relationship to the next level," Burke said.
The announcement follows Microsoft's April pledge to invest AUD $25 billion to expand AI and cloud infrastructure in Australia, strengthen cybersecurity work, and provide AI skills training to three million Australians. Microsoft described it as its largest investment in the country.
That plan also included expanding the Microsoft-ASD Cyber-Shield to additional government agencies. The new memorandum links that work more directly to resilience planning for national systems and critical infrastructure.
Microsoft said the partnership reflected the growing link between digital systems, economic security, and national security, particularly as AI is adopted more widely across government and industry.
"Digital resilience is foundational to Australia's national and economic security in the AI era. This partnership demonstrates what is possible when government and industry work together to strengthen critical systems, support trusted innovation, and ensure new technologies are deployed securely and responsibly in the national interest," Monaco said.
She said the agreement could serve as an example of collaboration between governments and industry.
"This collaborative approach is a strong example of how governments and industry can work together to support a more digitally resilient future, delivering meaningful benefits for the economy and society," Monaco said.
The memorandum takes effect immediately and is intended to sit alongside existing cooperation between Microsoft and the Australian Government. It is focused on maintaining what both parties describe as sovereign digital foundations for security and the economy as technology and cyber threats evolve.
Jane Livesey, President of Microsoft Australia and New Zealand, said the agreement built on the company's long-term presence in the market and its government relationships.
"This agreement reinforces Microsoft's long-term commitment as a trusted partner in Australia's security and prosperity. We believe resilience is a growth strategy, and by strengthening our partnership with Government, we are helping provide the resilient digital foundations Australia needs to and thrive," Livesey said.
She linked that position to local investment and collaboration with public and private sector organisations.
"Through continued investment in local infrastructure and expertise, and close collaboration with industry and government on security, we're supporting Australia's ability to innovate with confidence," Livesey said.