Australia must take decisive action: designate the IRGC as a terrorist organization and expand sanctions on Tehran’s cyber and illicit financial networks.
Last month, comments by Fatima Payman, an Afghan-born Australian senator, in defense of the Islamic Republic and its treatment of Iranian women rightfully outraged many in Australia. Although the senator apologized for her statement, the affair put a spotlight on Canberra’s Iran policy.
For most Australians, the Islamic Republic of Iran may seem like a small challenge. It abuses human rights, takes foreign tourists and academics hostage, pursues nuclear ambitions, and stokes conflict with Israel. While Tehran’s malign behaviour may seem thousands of kilometres away, the increasing cooperation between like-minded aggressors like Russia, China, Iran, and North Korea highlights the potential for these countries to form a more unified axis.
In 2024, navy chiefs from the Australia-United Kingdom-United States (AUKUS) alliance warned politicians about increasing collaboration between China, Russia, and Iran. This concern is not limited to military officers. The Australian Security Intelligence Organisation (ASIO) Director Mike Burgess issued an alert on February 19, 2025, stating that Australia faces its most complicated and difficult security situation to date. Without mentioning Iran specifically, he disclosed that adversarial intelligence agencies now target critics on Australian territory. In 2023, Australian authorities uncovered an Iranian plot to spy on an Australian citizen on Australian soil.
Both Indo-Pacific power shifts and the traditional alliance with the United States and the United Kingdom have long shaped Australia’s security outlook, but challenges now grow. Iran’s support for Russia in Ukraine exemplifies how authoritarian regimes collaborate across the globe. In another sign of this emerging alliance, China, Iran, and Russia held joint naval drills in the Gulf of Oman near the strategic Strait of Hormuz earlier in March. In a future Pacific crisis, Tehran will be on the side of Canberra’s adversaries with at least cyberattacks if not direct military support.
China’s recent military drill in the Tasman Sea, which caused the diversion of international commercial flights, shocked many in Australia. Such “gunboat diplomacy”, as the Australian opposition described it, occurred amid growing fears about a potential Chinese attack on Taiwan.
As global tensions rise, Australia faces a defining moment in its foreign policy toward the Islamic Republic of Iran. In the aftermath of the Israel-Hamas War, with U.S. President Donald Trump back in office, and the “maximum pressure” campaign revived, global focus will return to Tehran’s destabilizing actions. For Australia, aligning with this effort shouldn’t be just about supporting both other Western allies and the Iranian people chafing under a repressive regime; it should be a strategic necessity tied to its security and values.
Australia already imposes some sanctions on Iran, both UN-aligned and unilateral, to target Iran’s nuclear program and human rights abuses. Two weeks after Tehran’s missile barrage against Israel in October 2024, Australia imposed financial sanctions and travel bans targeting individuals associated with Iran’s missile program to pressure Tehran into compliance with international norms.
Yet, a glaring inconsistency persists: Australia has not designated the Islamic Revolutionary Guard Corps (IRGC) to be a terrorist group, despite its role in conflicts, terror sponsorship, and domestic repression. Differentiating between IRGC units is disingenuous given that the IRGC’s business network funds its terror even more than official government budgetary support.
Ahmad Sadeghi, Iran’s ambassador to Australia, has praised terror leaders and posted calls to “wipe out” the “Zionist plague.” The problem is not just rhetoric. Iran poses a real threat to Australia. Before Burgess’ recent statement, the ASIO had flagged Tehran’s cyber espionage targeting Australians. The threat from the Islamic regime is no minor issue; a 2024 Lowy Institute poll cited cyberattacks as a top concern for 70 percent of Australians.
The regime in Iran uses advanced cyber tools to intimidate dissidents and gather intelligence, threatening the Australian digital economy and critical infrastructure.
During his first term, the Trump administration targeted the Islamist regime in Iran with sanctions on oil, finance, and other IRGC-linked sectors. Now, with mounting evidence of Iranian assassination plots against U.S. officials—including Trump himself—Trump signals an even tougher approach. With the Middle East still a powder keg, pressuring rather than coddling could contribute to peace and change.
Security threats to Australia usually prompt bipartisan support for action across the political spectrum in Canberra. The threat posed by Tehran today is no different. The Islamist regime is undermining Australia’s strategic interests and domestic security. Supporting the United States and Jerusalem in their efforts against Tehran isn’t simply about backing American or Israeli interests—it’s about Australia’s own future and safety. A firm stance would bolster the global effort to curb its malign influence and help create a safer world.
Australia must take decisive action: designate the IRGC as a terrorist organization and expand sanctions targeting Tehran’s cyber and illicit financial networks. These moves would send a clear message that Canberra will not tolerate Tehran’s tactics. It’s time for Australia to act with strength and resolve.
Dr. Saeed Ghasseminejad is a senior advisor at the Foundation for Defense of Democracies, a non-partisan think tank in the United States.
Dr. Reza Arab is a lecturer at the School of Languages and Cultures at the University of Queensland.
Image: Juergen Nowak / Shutterstock.com.