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The headquarters of the Australian Security Intelligence Organisation.Credit:Sitthixay Ditthavong

Michael Pezzullo,the secretary of the Department of Home Affairs,also indicated police are"closing in"on the the suspected leaker of the documents. Mr Pezzullo lashed out at the disclosure as"completely unacceptable"and said the person should go to jail.

ASIO,the security agency charged with counter-espionage in Australia,told the hearing in Canberra the profession of journalism could be used"nefariously"by foreign intelligence services.

"These foreign intelligence actors seek to exploit vulnerabilities in our legal system in order to harm Australia's security and to recruit individuals who can assist them in their goals,"said ASIO deputy director-general Heather Cook.

"In Australia today,journalism is being used as a cover by foreign intelligence actors. And there is a long history of this worldwide."

Heather Cook,Deputy Director-General of ASIO,said journalism is being used as a cover by foreign intelligence actors.Credit:AAP

The agency noted journalism was a convenient cover for espionage as both occupations rely on access to senior people and sensitive information. Ms Cook said some journalists had reported to ASIO their attempted recruitment by foreign spies.

"In light of this,ASIO has concern about the concept of exemptions for particular classes of people in the community,such as journalists. Broad exemptions for the media and journalists would invite exploitation by foreign intelligence actors and may increase the intelligence threat faced by Australian journalists,"she said.

The agency has previously pointed to astory by a Angus Grigg fromThe Australian Financial Review about an approach from Chinese operatives. ASIO director-general Duncan Lewis described the story as"illuminating"and"stunningly consistent"with other examples known to the agency.

Ms Cook on Wednesday highlighted the"fundamental"importance of classified information not being leaked and said journalists should not be exempted from laws around unauthorised disclosure.

She disputed that media outlets and journalists were well-positioned to exercise their own judgement over the potential risks of publishing classified material.

Appearing before the inquiry on Tuesday,media representatives had challenged authorities to provide examples of harm caused to Australia's national security from public interest journalism.

They argued their newsrooms carefully weighed up the implications of publishing sensitive information and sought to consult with relevant authorities in that process.

AFP commissioner Andrew Colvin was asked on Wednesday to clarify if Smethurst could still face charges stemming out of their probe into last year's leak,which revealed a proposal for electronic intelligence agency the Australian Signals Directorate to take on an expanded domestic role.

"It remains the case that the investigation is ongoing,"Mr Colvin said,adding that the search warrant executed at Smethurst's home was part of evidence collection.

"So I'm not drawing anyone in or out who may have been determined,or who we may determine,has committed a crime."

Deputy commissioner Neil Gaughan said there was significant concern about where the leaker"potentially sits within the bureaucracy".

"Whilst we still have some work to do in relation to the person who we suspect has provided the information to Ms Smethurst,I have just got to be really careful where I go with answering these questions,"Mr Gaughan said.

Mr Pezzullo,said the leaker"should go to jail"for their actions and indicated police were"closing in"on a suspect.

News Corp said Mr Pezullo's comments"go a long way towards confirming our concern that you can risk jail if you annoy people in power".

"As we said at the time of the raids,the episode smacks more of intimidation than investigation,"Campbell Reid,News Corp's group executive of corporate affairs,policy and government relations,said.

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