Australia’s counterterrorism laws have significantly expanded the powers of its law enforcement and intelligence agencies with regard to digital surveillance. In this article, we explain and evaluate Australia’s counterterrorism laws with respect to intercepting telecommunications, other forms of digital surveillance and access to encrypted communications. We focus on the statutory powers held by federal law enforcement agencies and the Australian Security Intelligence Organisation (ASIO), Australia’s domestic security intelligence agency. These powers confirm several important trends. They have further blurred the lines between intelligence and evidence and they have granted law enforcement and ASIO extraordinary powers to modify consumer technologies. They also create significant potential for conflict of laws across national boundaries. Significant strengthening of existing accountability mechanisms is needed to ensure public transparency and reduce opportunities for misuse.